LANDBANK | Corporate Governance Scorecard

Corporate Governance (2019)

LANDBANK is fully compliant with the provisions of the Code of Corporate Governance.

CORPORATE GOVERNANCE SCORECARD* FOR GOCCS 2019**
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,
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. See Nationwide Customer Satisfaction Survey, Employee Health and Well-being, and Consumer Protection Programs
"b. Interaction with the communities			Yes. See Corporate Social Responsibility Initiatives and 2019 Awards and Recognitions Received by LANDBANK
c. Environmentally-friendly value chain			Yes. See Enhanced Environmental and Social Safeguards Relative to Credit Delivery
3. Does the GOCC have a separate Corporate Social Responsibility (CSR) report/section or sustainability report/section?			Yes. See Corporate Social Responsibility Initiatives
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.
b. Does the GOCC publish data relating to health, safety and welfare of its employees?			Yes. See Employee Health and Well-being.
c. Does the GOCC have training and development programmes for its employees?			Yes. See Talent and Development under Human Resource Management
d. Does the GOCC publish data on training and development programs for its employees?			Yes.See Talent and Development under Human Resource Management
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 LBP AO No. 141, s. 2018 (pages 3-8).
b. Does the GOCC have procedures to protect an employee/person who reveals illegal/unethical behavior from retaliation?			Yes. See page 5 of Revised Guidelines on Internal Whistleblowing and Reporting (2018) "Rights of Whistleblowers"
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’s Integrated Countryside Lending Framework See also LBP Website, Transparency Seal, II. CODE OF CORPORATE GOVERNANCE FOR GOCCs-Mandatory Website, D. On LANDBANK's Governance Matters, 2019 Performance Scorecards and Strategy Map
b. Financial performance indicators			Yes. See Transparency Seal I.2.b. Annual Audited Financial Statement (2019): 1. Financial Highlights (Group) - please check the following links: 2019 Independent Auditor's Report 2019 Statement of Management's Responsibility 2019 Statement of Financial Position 2019 Statement of Comprehensive Income 2019 Statement of Changes in Capital Funds-Group 2. Financial Results of Business segments - please check the following links: 2019 Statement of Financial Position 2019 Statement of Comprehensive Income 2019 Statement of Changes in Capital Funds-Group 2019 Statement of Changes in Capital Funds-Parent 2019 Statement of Cash Flows 2019 Notes to Financial Statements 3. Tables on Statements of Financial Position 4. Comprehensive Income 5. Changes in Equity-Group & Parent 6. Cash Flows 7. Notes to FS
c. Non-financial performance indicators			Yes. See Chairman's Message and President's Message See Pursuit of Mandate; Customer Service; Disbursement Services for the National Government; Nationwide Customer Satisfaction Survey; Developing World-Class Operations; Customer Care; Human Resource Management- Talent Acquisition & Development; Employee Health and Well-being; Employee Volunteerism Activities; Gender and Development Program; Orientation and Education Program for Directors and Senior Management ; Institutional Viability; Succession Policy and Retirement Policy; 2019 LANDBANK Products and Services
d. Details of whistleblowing policy			Yes. See Revised Guidelines on Internal Whistleblowing and Reporting (2018) where it has been discussed.
e. Biographical details (directors)			Yes. See Composition of the LANDBANK Board of Directors as of 31 December 2019 and Board Qualifications, Educational Background And Experiences
f. Trainings or continuing education (directors)			Yes. See Board Qualifications, Educational Background And Experiences
8. Are the Annual Reports downloadable from the GOCC’s website?			Yes. See Annual Report (Date of posting: 22 December 2020)
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?			Yes. See Transparency Seal I.2.b. Annual Audited Financial Statement (2019):
b. Is the Annual Report released within 90 days from the release of the audited financial report?			See Annual Report (Date of posting: 22 December 2020)
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?			Yes. See Transparency Seal I.2.b. Annual Audited Financial Statement (2019): Statement of Management's Responsibility for Financial Statements
11. Corporate Vision/Mission
a. Has the Board of Directors reviewed the vision and mission/ strategy in the last financial year?			Yes. See Board’s Overall Responsibility Transparency Seal 2019 which states that the LANDBANK Board reviewed and approved the Bank's Vision and Mission and Strategy Map on 13 February 2019, Board Reso. No. 19-082
b. Does the Board of Directors monitor/oversee the implementation of the corporate strategy?			Yes. See Board’s Overall Responsibility
12. Did the GOCC achieve 90% in the PES?			Yes. See LBP website, click on the Transparency Seal, Performance Scorecard
13. Code of ethics or conduct
a. Are the details of the code of ethics or conduct disclosed?			Yes. See Code of Conduct for LANDBANK Directors and Employees and Code of Conduct for LBP Directors
b. Does the GOCC disclose that all Directors/Commissioners, senior management and employees are required to comply with the code?			Yes. See Section VI. Distribution of the Code of the Code of Conduct for LANDBANK Employees (page 17) of Code of Conduct for LANDBANK Directors and Employees and Code of Conduct for LBP Directors
c. Does the company disclose how it implements and monitors compliance with the code of ethics or conduct?			Yes. Implementation and monitoring of compliance is discussed on Ethics and Integrity and Section VI. Distribution of the Code of the Code of Conduct for LANDBANK Employees (page 17) of Code of Conduct for LANDBANK Directors and Employees and page 7 Code of Conduct for LBP Directors, and the Code of Conduct certification for LBP Directors.
14. Does the Board appoint a Nomination Compensation/Renumeration Committee?			Yes. See Board-Level Committees including Membership and Function, Corporate Governance 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, 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 eight meetings in 2019.
16. If yes, is the report of the Nomination Compensation/Renumeration Committee publicly disclosed?			Yes. See Board-Level Committees including Membership and Function, Corporate Governance Committee, which states that the CG Com issued 57 resolutions which tackled the results of the Performance Rating System, organizational changes, establishment of Lending Centers, promotions of senior officers and personnel movements.
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 (as of December 31, 2019)..
18. If yes, is the report of the Audit Committee publicly disclosed?			Yes. See Board-Level Committees including Membership and Function under Audit and Compliance Committee
19. Does at least one member of the Audit Committee have an audit, accounting or finance background (qualification or experience)?			Yes. Please refer to Transparency Seal II. On the LANDBANK’s Board and Officers, item B.1 Complete Listing of the Directors and Officers with attached resume and their membership in Board 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 Units under the Board of Directors (Internal Audit Group), last paragraph
21. Does the Board appoint a Risk Management Committee?			Yes. See LANDBANK Risk Management (RM) Philosophy & Culture, particularly the 2nd sentence of the 1st paragraph and Board-Level Committees including Membership and Function, Risk Oversight Committee
22. If yes, is the report on Risk Management Committee publicly disclosed?			Yes. See 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?			Yes. Please refer to Transparency Seal II. On the LANDBANK’s Board and Officers, item B.1 Complete Listing of the Directors and Officers with attached resume and their membership in Board Committees-- DOF Secretary Carlos G. Dominguez represented by Deputy Treasurer Erwin D. Sta. Ana has 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, which states that the schedule of the meetings of the Board of Directors is agreed upon at the beginning of the year. For CY 2019, this was agreed upon during the Board meeting held on January 9, 2019.
b. Does the Board of Directors meet at least monthly?			Yes. See Board Meetings and Attendance, which states that in general, there are at least two meetings scheduled per month, held on every second and fourth Wednesday of each month.
c. Did the Board of Directors meet on at least 75% on their scheduled meetings?			Yes. See Directors' Attendance
d. Has each of the directors/commissioners attended at least 90% of all the board meetings held during the year?			No. Only the appointive Directors have attended all the Board meetings during the year. See Directors' Attendance
e. Did the Board of Directors meet separately at least once during the year without the President/CEO present?			Yes. See Board Meetings and Attendance, which states that the non-executive Directors and the Heads of Internal Audit Group, Risk Management Group, Compliance Management Group and the Resident COA Representative were able to meet separately on December 6, 2019, without the presence of the President and CEO, in compliance with the BSP and GCG requirements.
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?			Yes. See Board Meetings and Attendance, as much as practicable, materials for the Board meeting are sent to the members of the Board at least three business days before the Board meeting.
b. Is the Board Secretary trained in legal, accountancy or company secretarial practices?			Yes. See Board Meetings and Attendance, which states that the Corporate Secretary from January to December 2019 was Atty. Myra-Lyn S. Peñalosa, who has been a member of the Philippine Bar since 1997.
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. 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?			Yes. Under the Audit and Compliance Committee Charter, Section 6.1.a., one of the responsibilities of the Committee in the functional supervision over IAG and CMG is to endorse to the Board the appointment or removal of the Heads of IAG and CMG.
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, 5^th paragraph, 1^st sentence, 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,, 5^th paragraph, 2^nd sentence, 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 and compliance control) and RM system. "
c. Does the company disclose how key risks are managed?			Yes. See Board-Level Committees including Membership and Function, under Risk Oversight Committee for the following topics: 1. Credit RM 2. Market RM 3. Interest Rate RM 4. Liquidity RM 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, 1^st paragraph, 2^nd sentence, stating that: "It is an integrative component of good governance which the LANDBANK Board, Risk Oversight Committee (Risk Com) and Senior Management oversee to ensure adequacy of framework, policies, internal controls, RM systems and procedures to manage risks. "
28. Board Chairman
a. Do different persons assume the roles of Chairman and CEO?			Yes. See Board Composition, which states that the positions of Chairman of the Board, and President & CEO, are held by two different persons. The Chairman of the Board is Sec. Carlos G. Dominguez, Secretary of the Department of Finance, while the President & CEO is Cecilia C. Borromeo, who is also the Vice-Chairperson.
29. Board of Directors Development
a. Does the GOCC have orientation programmes for new Directors?			Yes. See Orientation Programs for New Directors
b. Does the GOCC have a policy that encourages Directors/Commissioners to attend on-going or continuous professional education programmes?			Yes. See Performance Assessment Program for the Board of Directors and CGCom Resolution 20-003
c. Did all Appointive Directors attend at least 1 training for the calendar year?			Yes. See Relevant Qualifications and Experiences Including Directorship and Officership in Other Companies.
30. Board Appraisal
a. Is an annual performance assessment conducted of the Board of Directors assessment?			Yes. See Performance Assessment Program for the Board of Directors
b. Does the GOCC disclose the process followed in conducting the Board assessment?			Yes. See Performance Assessment Program for the Board of Directors
c. Does the GOCC disclose the criteria used in the Board assessment?			Yes. See Performance Assessment Program for the Board of Directors
31. Committee Appraisal
a. Is an annual performance assessment conducted of the Board of Directors Committees?			Yes. See Performance Assessment Program for the Board of Directors
BONUS
Stakeholder's Relationship: Does the GOCC practice Global Reporting Index (GRI) on its annual reports?			Yes. See Annual Report (Date of posting: 22 December 2020)
Disclosure and Transparency: Are the audited annual financial report/statement released within 30 days upon the receipt from COA?			Yes. See Transparency Seal I.2.b. Annual Audited Financial Statement (2019):
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. See Board Qualifications, Educational Background And Experiences .
b. Is there non-compliance with Good Governance Conditions?			None. See Corporate Governance. LBP is fully compliant with Good Governance Conditions

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*Based on the prescribed format of the Governance Commission for GOCCs.
**Latest available data/reports

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Corporate Governance (2019)

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