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14STI Education Systems HoldingsSTI WEST NEGROS UNIVERSITY, INC.(STI WNU)Sustainability Report 2020INFORMATION AND COMMUNICATIONSTECHNOLOGY ACADEMY, INC. (iACADEMY)STI WNU, a leading university in the City of Bacolod inSTI WNU was founded by three Baptist women leadersiACADEMY is a premier school that specializes inNegros Occidental, offers a wide variety of programson Valentine’s day of 1948 when the city was still reelingcourse offerings in animation, multimedia arts andand complements the courses offered by the Parentfrom the aftermath of the Second World War. The school,design, fashion design and technology, softwareCompany’s other subsidiary, STI ESG. The Universitythen West Negros College, first operated as a sectarianengineering, game development, film and visualoffers elementary, secondary including SHS, tertiaryeducational institution offering six undergraduateeffects, and real estate management. It also offerseducation, and post-graduate courses. It also operates aprograms that attracted 710 students handled by 33 facultySHS. It was established in 2002 as a wholly-ownedmaritime training center that offers and conducts trainingmembers. It has since gone through years of providingsubsidiary of STI ESG, and through acquisition byrequired by the Maritime Industry Authority (MARINA)education that is responsive to the needs of the communitySTI Holdings, became its wholly-owned subsidiaryfor officers and crew on-board Philippine and/or foreignand received its Certificate of University Status from CHEDon September 30, 2016. Classes are conductedregistered ships operating in the Philippine and/orin June 2008.at the iACADEMY Nexus building along Yakal St.in Makati City, with top-of-the-line multimedia artsinternational waters.In October 2013, the Parent Company acquired majorityownership interest in STI WNU. Since then, STI WNU’sfacilities have been undergoing continuous upgrade,catering to more than 6,000 students.laboratories and computer suites.15

16STI Education Systems HoldingsGRI 102-16EDUCATIONALPHILOSOPHYThe Group strongly promotes the learner-centered approach as its paradigm for teaching and learning, thus everySTAKEHOLDERGROUPFREQUENCY OFENGAGEMENTMODE OFENGAGEMENTCONCERNSRAISEDTHE GROUP’S RESPONSE(REPORT REFERENCE)Regular basisOrientationprogram, schoolactivities, networkevents, seminars,social mediaPrograms or courses,school facilities,campus life, teaching,tuition fees, safetyQuality and Affordable Education (p. 24), CurriculumDevelopment and Implementation (p. 24), StudentAffairs & Services (p.28), Academic Research (p.35),Inclusive Education (p.39), Education Facility Safety(p.39), Sustainability Agenda (p.40), andCustomer Data & Privacy (p.63)Regular basisOrientationprogram, trainings,workshops,assembly,social mediaHuman resourcesrelated such assalary, benefits,working hours,trainings, careeradvancement,health & safetyAcademic Research (p.35), Employment (p.56),Learning & Development (p.58),Safety and Well-being (p.59)ParentsRegular basisCampus tour,orientation program,parents-teachersseminar, website,media articles,social mediaQuality of education,school facilities,teaching,tuition fees, safetyQuality and Affordable Education (p. 24), CurriculumDevelopment and Implementation (p. 24), StudentAffairs & Services (p.28), Academic Research (p.35),Inclusive Education (p.39), Education Facility Safety(p.39), Sustainability Agenda (p.40), andCustomer Data & Privacy (p.63)AlumniAnnual or asrequiredWorkshops,seminars, website,social mediaEmploymentStudent Affairs & Services (p.28), CommunityRelations & Strategic Partnerships (p.61), andCustomer Data & Privacy (p.63)Board of DirectorsQuarterly or asneededBoard meetingsOverall performanceof STI Holdings,financeEconomic Performance (p.44),Governance (p.45)StockholdersQuarterly andAnnualAnnualstockholders’meeting, reports,website, mediaarticles,social mediaOverall performanceof STI Holdings,finance,company updatesEconomic Performance (p.44),Governance (p.45)InvestorsQuarterly, Annual,or as neededAnnualstockholders’meeting, reports,website,media articlesOverall performanceof STI Holdings,finance,company updatesEconomic Performance (p44.),Governance (p.45)Industry PartnersAs requiredMeetings, seminars,trainings, events,website, mediaarticles,social mediaCollaborationopportunities,curriculum design,graduateemployment,on-the-job trainingSustainability Agenda (p.40), Community Relations &Strategic Partnerships (p.61)RegulatorsMonthly or es,access to education,curriculumQuality and Affordable Education (p. 24), CurriculumDevelopment and Implementation (p. 24), EducationFacility Safety (p.39), Economic Performance (p.44),Governance (p.45), Energy & Emissions (p.52), WasteManagement (p.53), Customer Data & Privacy (p.63)Suppliers andService ProvidersAs neededBidding process,meetingsBusinessopportunities, supplychain impactsSupply Chain (p.45), Safety and Well-being (p. 59)Local CommunityAs requiredSchool activities,events, website,media articles,social mediaCommunityengagement, safetySustainability Agenda (p.40), Climate Change (p. 50),and Community Relations &Strategic Partnerships (p.61)StudentsFaculty and Staffstudent is nurtured holistically through a technology-enhanced, student-centered active learning. The Group strives tooffer learning opportunities that allow the students to maximize their potential and growth so that they can thrive in acontinuously changing, technologically-driven world.GRI 102-40, 102-42, 102-43, 102-44STAKEHOLDERENGAGEMENTEngagement with stakeholders is crucial to the success of any organization. The Group’s constant interaction and17Sustainability Report 2020collaboration with its key stakeholders play a critical role in identifying, understanding, and responding to issues andconcerns that impact them, thereby helping it identify areas for improvement, develop plans to address these issues,and ultimately improve the Group’s sustainability performance.Our stakeholders were selected based on influence, representation, contribution, responsibility, and dependency of the Group.

18STI Education Systems Holdings19Sustainability Report 2020MATERIALITY THEMES AND MATRIXGRI 102-46, 102-47MATERIALITYThe materiality assessment resulted in the identificationBelow is an overview of the materiality assessmentof 17 material sustainability topics, which were thenwith the topics’ relevant impact to the Group andranked based on thier importance to the Group and itsits stakeholders. The material topics are positionedstakeholders. The issues were further grouped into fourbased on their importance to the stakeholders andsignificance of impact.STI Holdings and its subsidiaries engaged Sycipof both external and internal stakeholders. Desktopthemes to guide the structure and content of this report.Gorres Velayo and Company (SGV & Co.) to conductreviews covering the Group’s internal documents andFurther details on these themes and topics are providedthe Group’s sustainability materiality assessment andother publications by industry peers, the media, andthroughout the report.help prioritize its material issues, which will drive therelevant non-governmental organizations (NGOs) wereframework and content of its sustainability report. Thealso conducted to incorporate and consider externalmateriality assessment aims to determine the issuestrends and their magnitude and likelihood of impacts.that are material to the Group and its stakeholders. TheThe external review, additionally, aims to assess publiclyGroup followed the guidelines and principles set by theavailable information to identify relevant industry-Securities and Exchange Commission (SEC), the Globalspecific material issues and benchmark against reportsReporting Initiative (GRI) Standards, and the Sustainabilityof other leading educational institutions.Accounting Standards Board (SASB) Standards todevelop its list of material topics.System-wideDevelopmentThe Group then carefully considered the results ic Valueand GovernanceA materiality assessment workshop was conductedand in coming up with a materiality assessment matrixand attended by key personnel of the Group to helpshowing the Group’s material economic, environmental,prioritize key issues and evaluate each topic’s level ofsocial, and governance issues.Highthese activities in forming its sustainability frameworkimportance (low, medium, or high) from the viewpointsCommunity Relationsand Strategic PartnershipsEmploymentSustainability AgendaStudent Affairs and ServicesCurriculum Development and ImplementationWaste ManagementMediumEnergy and EmissionsQuality and AffordableEducationEconomicperformanceClimate ChangeCustomer Data Privacy and SecuritySafety and WellbeingInclusive EducationLearning and DevelopmentEducation Facility SafetyGovernanceLowIMPORTANCE TO STAKEHOLDERSAcademic ResearchLowMediumIMPACT ON OR BY THE GROUPHigh

20STI Education Systems HoldingsUNITED NATIONS SUSTAINABLEDEVELOPMENT GOALS (SDG)The Group strives to place sustainability at the heart ofSDG 3: Good Health and Well-being a better and more sustainable future for all, includingeducational institutions within the Group support thealleviation of poverty, access to quality education,principles of the SDGs.equality, and prosperity.The 17 SDGs highlight the extent of today’s social,In this report, the Group has mapped its activities andeconomic, environmental, and governance issues. It alsoaligned these with the various SDGs as it aims to be arecognizes the pivotal role of education in delivering thesepositive partner in its community.Building administration policies specifyingSDG 8: Decent Work and Economic Growth security, campus safety, command teams,and safety workflows ready to be activated inresponse to emergency situations Health insurance policy covering students,teachers, and full-time administrative staffPhP720M paid to employees in the form ofwages and benefitsguidelines for facility preventive maintenance,goals and values to the society. The SDGs aim to achieveits education, research, and business operations as the21Sustainability Report 2020 PhP24M paid in taxes to the government 88.4% of procurement budget spent onlocal suppliers 739 new employee hires within the Group Over 23,000 skilled graduates contributing tothe supply of human capital, not just across thecountry but also to the global industrySDG 4: Quality Education Scholarships or alternative form of financialassistance for over 13,000 students withinthe whole STI network Senior High School Qualified VoucherSDG 12: Responsible Consumption andProduction Recipients and beneficiaries of the TertiaryEducation Subsidy aggregating to over33,000 students Alternative Learning System (ALS) in sixSTI campuses and “Clean as you go” Career orientation and internship programsfor senior high school (SHS) and collegeselect campusesSDG 13: Climate Action Centralized courseware development toCurriculum development incorporatingsustainability and addressing climate change Student activities relating to wastemanagement and energy efficiencystudents Availability of waste treatment facilities inNew program offerings that are industry andmarket-driven Campaigns to “Reduce, Reuse and Recycle” Partnerships with government agencies andNGOs for climate change-awareness activitiesensure the standard delivery of coursesacross its network of schoolsSDG 5: Gender Equality 45.7% Male Employees,SDG 16: Peace, Justice, andStrong Institutions policies, and standards of governing bodies54.3% Female Employees Equal employment opportunityCompliance with laws, rules and regulations,covering the Group’s operations No substantiative complaints nor complaintsreceived from regulatory bodies and no leak orloss of customer data

22STI Education Systems HoldingsSYSTEM-WIDEDEVELOPMENTThe educational entities in the Group endeavorto transform lives through education, empowerthe students to reach their full potential,provide opportunities for social inclusion, andlook forward to a society where individuals canuse their abilities, experience, and talents tomake a positive difference.Sustainability Report 202023

24STI Education Systems HoldingsQUALITY AND AFFORDABLE EDUCATION25Sustainability Report 2020discussions with industry partners to determineand responsibilities of a faculty member is to developprograms, both degree and technical-vocational, thatcourseware that shall be used eventually as the standardare needed by the industry and the market. Revisionscourseware for that subject.The Philippine education system has evolved withto the programs are likewise implemented to meet thetoday’s focus on expanding access and ensuringidentified needs as well as changes in governmentThe standardized curriculum and courseware materialsmore Filipinos receive quality education as a meansregulatory requirements. Existing program offeringsprovide schools within the STI ESG network, includingof reducing poverty and ultimately contributing to theare also reviewed accordingly. The streamlining ofSTI WNU, with efficiencies of scale as a single coursecountry’s economic growth. The private educationalthe program curricula in response to the needs of thecould reach thousands of students. These also improvesector, in support of the government efforts, provides amarket and developments in the industry drives thethe quality of the teaching-learning process sincerationalization of the Group’s program offerings.the prepared plans reduce the amount of time thatwide range of educational offerings from early years upto the tertiary level, in academic centers, colleges, anduniversities across the country.All education entities under the Group are committedto providing quality and affordable education to itsstudents so they can eventually make a difference intheir community. Good education will enable studentsto develop their abilities and skills to help them reachtheir full potential. The Group believes that educationis one of the most important factors in increasinghuman capital as a determinant of economic growth.The Group has delivered the following contributions forschool year (SY) 2019-2020:83,967students*23,228graduates**across the networkThe Group offers tuition installment plans to facilitate amore affordable payment scheme. Also, to ensure thatmore Filipino youth have access to quality education,the Group provides scholarship grants to academicallydeserving students, siblings of existing students,dependents of employees and/or alumni, and varsityplayers, among others. The Group likewise acceptsstudents with Tertiary Education Subsidy (TES) and thosethat are Senior High School Qualified Voucher Recipients.faculty members need to research the subject contentFurthermore, STI ESG has a centralized coursewareand prepare lesson plans. The faculty member candevelopment group which is responsible for theconcentrate instead on the actual delivery of the content,development of its lesson plans and teaching materials,in accordance with the learning styles of the students,to ensure the standard delivery of courses across itsfocus on helping students learn, and participate in extra-network of campuses. This group of highly qualifiedcurricular activities as faculty advisers. In addition, thisprofessionals with extensive knowledge on contentsystem allows the schools to offer high-quality educationand pedagogy develops the course syllabi, presentationacross the entire network, allowing students to receive theslides, instructor’s guide, student handouts, and othersame level of quality education regardlessstudent learning materials for each course in allof their location.academic programs. For iACADEMY, part of the dutiesThese scholarship grants and subsidies assist students infinancing their educational journey.STI ESG ProgramsSenior High SchoolGRI 102-12CURRICULUM DEVELOPMENT AND IMPLEMENTATIONThe curriculum facilitates the acquisition of attitudes,skills, values, knowledge, and competencies that allowstudents to face challenges and navigate life successfully.It is crucial that the curriculum promotes universal valuesand the importance of life-long learning in order to thrivein a constantly changing, globalized society.Staying true to its commitment of providing the studentswith real life education, the Group strives to be responsiveto the changes and trends of the industry to furtherstrengthen its curriculum and equip the students withthe right knowledge and training. The Group regularlyconducts market studies and frequent roundtableAcademic Track Accountancy, Business, and Management Humanities and Social Sciences Science, Technology, Engineering, andMathematics General Academic StrandTechnical-Vocational-Livelihood Track ICT Strand with specializations in: Computer Programming Animation Illustration Broadband Installation Computer Hardware Servicing Home Economics Strand with specializations in: Commercial Cooking Cookery Bartending Food and Beverage Services Tour Guiding Services Travel Services Tourism Promotions Services Front Office Services Housekeeping Industrial Arts Strand with specialization in: Consumer Electronics Servicing

26STI Education Systems Holdings27Sustainability Report 2020STI WNU ProgramsBasic Education Pre- Elementary (Nursery, Kinder 1and Kinder 2)Elementary (Grades 1 to 6)Junior High School (Grades 7 to 10)Senior High SchoolAcademic Track Accountancy, Business and Management Humanities and Social Sciences General Academic Strand Science, Technology Engineeringand MathematicsTechnical-Vocational Livelihood Track Maritime Specialization Strand ICT Strand Home Economics StrandSchool of Graduate Studies (SGS)Tertiary BS in Information Systems BS in Computer ScienceBS in Information TechnologyBS in Information Technology major in NetworkEngineering*BS in Information Technology major in Digital Arts*BS in AccountancyBS in Management AccountingBS in Accounting Information SystemBS in Accounting Technology*BS in Business Administration major in OperationsManagementBS in Business Management major in Operations*BS in Office Administration*BS in Office Administration with specialization inCustomer Relations*BS in Hospitality ManagementBS in Culinary Management*BS in Hotel and Restaurant Management*BS in Tourism ManagementBS in Travel Management*BS in Computer Engineering

Map 2: STI Campuses in Northern & Central Luzon, Southern Luzon, Visayas, and Mindanao Mindanao 46. Cagayan de Oro 47. Dipolog 48. Iligan Pagadian 50. Zamboanga 51. Cotabato 52. Tacurong 53. Koronadal 54. General Santos 55. Surigao 56. San Francisco 57. Malaybalay Valencia 59. Tagum 60. Davao 12 STI Education Systems Holdings Sustainability .