COVID-19

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Infrastructure

Lipa City, LIMA Land Partner For Vaccination Hub

The Best Career Advice According To Spanx Founder Sara Blakely

SMA Calls For Inclusive Growth Through An Equitable Approach To Global Goals

Edustria High School at LIMA Estate sets up students for employment ahead of recovery

Aboitiz Group Advisory to External Stakeholders regarding COVID-19

2019 Bankers’ Night

2019 Brigada Eskwela Cebu

Jomes Kemuel Ibanez

by Earl Moreno

The COVID-19 pandemic created a different kind of normal for the entire country.
Customer demands shifted heavily, including transportation. Because of limited
movement allowed, Filipinos have to find alternatives to make sure that their
day-to-day needs are fulfilled. The demand for motorcycles has steadily
increased, as this vehicle is able to address these logistical limitations.
According to Motorcyclesdata.com
[https://www.motorcyclesdata.com/2021/03/04/philippines-motorcycles/], “The
growing Filipino middle class sees motorcycles as efficient and cost-effective
for both personal and business needs. With easy access to credit, sales
potential in the country is promising.”

City Savings Bank, Inc. (CitySavings) capitalizes on this potential through its
Motorcycle Loans business. Year on year, the Bank has constantly revved up its
Motorcycle Loan offerings to its clients by providing fast approvals, exclusive
offers, and  low down payments. Recently, the Bank also introduced a plethora of
motorcycle unit options to suit clients’ needs and financial capabilities
through its Motor Mo’to
[https://www.citysavings.com.ph/loans/motorcycle-loan/motor-moto] program.

> The goal really is to make it simpler for our clients to drive home their first
- maybe even their second or third - motorcycle. Especially with the pandemic,
the demand and usage of motorcycles have grown drastically, so we want
CitySavings to be top of mind when customers want to get their own.
- Ret. Adm. Feliciano Angue, Executive Vice President - Motorcycle Loans
Business Head, CitySavings
Growing Partnership with TNVS
Another key growth area being focused on by Motor Mo’to is having several
institutional partners that rely heavily on motorcycles for their operations.
Since 2019, CitySavings has been a partner of four major Transport Network
Vehicle Services (TNVS) and other logistics companies - Lalamove
[https://www.lalamove.com/en-ph/], Grab [https://www.grab.com/ph/], Quad X
[https://www.quadx.xyz/], and Foodpanda [https://www.foodpanda.ph/]. These
partnerships help to enable riders to get great motorcycle deals and flexible
payment options, thus expanding their income potential.

CitySavings x Quad X (Photo courtesy of Manfred "Mumph" Ruiz of Quad X)> For our
riders, upgrading their motorcycle is meaningful for different reasons. It’s an
opportunity that enables them to be more productive in their job, and opens up
many more opportunities for growing their own business.
- Bea Mantecon, Rider Operations Manager, Quad X
CitySavings x Foodpanda (Photo courtesy of Paul Trono of Foodpanda)> Assisting our
Foodpanda riders to provide the best service possible, CitySavings' Motorcycle
Loan has helped our riders' experience in more ways than one. As they
continuously offer affordable and exclusive deals for our riders, I am very
excited about what's in store for this partnership.
- Jao Manahan, Communications Manager, Foodpanda
CitySavings x Grab (File photo of CitySavings)> These partnerships are not just to
further strengthen each of our bottom lines. These help our riders by making it
simple to get motorcycles that would help them in growing their own businesses.
- Ruelito Aquino, Vice President - Institutional Sales Head - Motorcycle Loans
Business, CitySavings 
CitySavings x Lalamove (File photo of CitySavings)For Lalamove alone, the
partnership potentially benefits 35,000 riders in Luzon and Cebu where their
operations are currently in place.

Pre-loved Motorcycle Units
The Motorcycle Business Group does not hit the brakes there. Repossessed
motorcycle units have also shown huge sales potentials, given that resale values
are more affordable and more attractive to our customers. CitySavings is
accelerating the “Repo” Line with offers as low as 0% interest rates for
pre-owned units. 

Operational Efficiency and Customer Service
Another initiative lined up to further improve the services for the business is
Telco Credit Scoring. This technology helps in increasing operational efficiency
and minimizing risks by providing credit scores using clients’ telco data that
can assess their payment capability and potential for defaulting. And of course,
the group works to further improve the service capabilities of our Loan Rangers
to give our clients the best customer service.

Digital and Payment Channels
The Motorcycle Group has definitely made owning a motorcycle much simpler for
those who want or need one. It has also been made very accessible, not just
through affordable deals, but also through the various channels where our
customers can inquire and apply for a Motor Mo‘to
[https://www.citysavings.com.ph/loans/motorcycle-loan/motor-moto] loan. Aside
from the more than 100 CitySavings branches nationwide, interested clients can
also apply through the Loan Rangers, through the CitySavings website, and
through the most recent addition, the Facebook Messenger Chatbot, Talk To Maria
[https://www.facebook.com/TalkToMaria.CitySavings]. Payment channels have also
been expanded to complete the simpler customer experience. Aside from
CitySavings and UnionBank branches, Motor Mo‘to clients may also pay their
monthly amortizations through PERA HUB, M Lhuillier, and Bayad Center.

Banking and Financial Services

Motor Mo‘to: Fueled by Simplicity

Earl Gio Manuel

Aboitiz Construction recently donated sacks of rice worth Php 100,000 to the
local government of Parañaque City. This is to contribute to the continuous
COVID-19 recovery efforts of the said LGU.To help in sustaining the recovery
efforts of the local government unit of Paranaque City that is being led by Hon.
Mayor Edwin Olivarez, Aboitiz Construction donated sacks of rice worth Php
100,000 last June 17, 2021.


The turnover was graced by Aboitiz Construction Team Leaders (from left  to
right), Charisse De Villa
[https://aboitiz.workplace.com/profile.php?id=100064950116270], Head of Finance, 
Alicia Pascual [https://aboitiz.workplace.com/profile.php?id=100048954139400],
Assistant Vice President for Supply Chain and Materials Management, and Antonio
Peñalver [https://aboitiz.workplace.com/profile.php?id=100046498175231],
Executive Director. Also present were Hon. Edwin Olivarez, City Mayor of
Parañaque, Olan Fontanilla, Consultant, and Martin Castillo, Manager for
Corporate External Relations at Aboitiz Group.

“In Aboitiz Construction, we recognize our responsibility to serve the
communities where we are. Guided by our promise of advancing business and
communities, we will continue to partner with the communities in building a
better future and a better Philippines,” said by Antonio Peñalver.

The said activity is in line with the commitment of the company to contribute in
building a better future for the communities. In the next months, Aboitiz
Construction will partner with LGU to implement corporate social responsibility
programs that are in line with food sustainability, waste management, and
disaster preparedness in chosen barangays.

Aboitiz Construction is the construction arm of the Aboitiz Group of Companies,
one of the prominent conglomerates in the Philippines. Aboitiz Construction is a
privately-held company, with a 45-year track record in value construction and
engineering that advances businesses and communities by building a better
future.


Learn more about us here: www.aboitizconstructioninc.com

Construction

Aboitiz Construction extends support to the COVID-19 recovery efforts of Parañaque City

Aly Virrey


The Lipa City government is teaming up with LIMA Land, Inc. to set up a
vaccination hub within LIMA Estate’s premier Central Business District,
specifically at The Outlets at Lipa, in order to further accelerate vaccine
rollout in the city.

Lipa City Mayor Eric B. Africa (third from left) led the signing with the Luzon
Operations Head of Aboitiz InfraCapital’s Commercial Business Unit Rob Del
Rosario (fourth from left). Also in attendance during the signing were Lipa City
Legal Officer Atty. Raquel Maloles-Salazar (leftmost) and Lipa City
Administrator Dr. Percival Lojo (second from left), as well as The Outlet’s Mall
Operations Manager Liza Dimaculangan (second from right), and Keith Serrano
(rightmost).

The vaccination hub in LIMA’s CBD at The Outlets at Lipa is estimated to open
within the third quarter of 2021.

‘The Outlets at Lipa’ is one of Luzon’s largest outlet shopping destinations
located within the Central Business District of LIMA Estate in Lipa-Malvar,
Batangas. LIMA Estate is a 794-hectare Philippine Economic Zone Authority (PEZA)
– registered industrial-anchored development that is home to 130 locators and
their 60,000 employees, and 2,500 households. It also has a 138-room 4-star
hotel development and 167 shops located in its mall establishments.

Aboitiz Eyes

This article was published on Inc. and annotated by EMA.


--------------------------------------------------------------------------------

Aboitiz Group President and Chief Executive Officer Sabin M. Aboitiz joined
business leaders across the world at the UN Global Compact Leaders Summit to
tackle the converging global crises of the COVID-19 pandemic, climate change,
and economic inequity in order to develop a roadmap for sustainable recovery. 

As a member of the UN Global Compact and the Global Compact Network Philippines
Board of Trustees, the Aboitiz Group was invited to share its unique perspective
on the topic of Energy Transition for A Sustainable Future as outlined by the
Sustainable Development Goals (SDGs). SMA highlighted the growing social and
economic disparity between developed and developing economies, a gap that he
believes the policies formed by richer countries should aim to narrow. 

> [Inequality] prevents us from being competitive. It prevents us from providing
affordable power, which is a requirement of SDG 7 (Affordable and Clean Energy).
It prevents us from achieving SDG 1 (No Poverty) by restricting our capital and
redirecting already limited resources elsewhere. We all deserve to be developed
countries, so we need to solve this problem, but we cannot do it alone; we need
the richer countries to understand that we are not at their level. 

—Sabin M. Aboitiz, President and CEO, Aboitiz Group
Long before the establishment of the SDGs, the Aboitiz Group has built its
products and services around being an inclusive business that creates
opportunities to uplift the lives of all its stakeholders across the
Philippines, especially those facing economic hardship. 

“Poverty, not just for us but for the entire world, is one of the greatest
problems we face,” SMA said. “One way to diminish poverty is to create jobs, and
to create jobs we need to attract industry, and to attract industry we need to
have competitive infrastructure and power,” he pointed out.

For growing economies to achieve the objectives outlined in the SDGs, SMA said
there should be a balance that allows each country to develop at its own pace,
as trying to keep up with the standards set out by far more advanced countries
may end up being counterintuitive in the long run.

“Sustainability is our common and necessary goal and in order to achieve it, we
must be able to see the whole picture, undistracted by misinformation or a lack
of information,” he emphasized. “We must all be fully informed about all the
costs and benefits of renewable energy and find a sensible way to balance them
with respect to our own individual situations.”

The Philippines has made headways into renewable energy, with a significant
percentage of the nation’s power being generated from clean energy sources. For
its part, the Aboitiz Group — along with its partners — owns and operates the
largest installed capacity for renewables in the country and is set on further
expanding its clean energy portfolio to an even 50-50 renewable-to-thermal
energy mix by 2030.

“We are already using much more renewable energy than a lot of other countries;
more than 30% of our power is already clean,” SMA cited. “For SDG 13 (Climate
change action), we are making significant strides to align with the goals of the
Paris agreement. These include much more defined governance, strategies,
targets, and metrics on climate action. We are also reducing waste and
Greenhouse gas emissions, promoting responsible water consumption, and
contributing to the recovery of a circular economy.”

The Aboitiz Group’s purpose and brand promise to drive change for a better world
by advancing business and communities is the company’s direct response to the
unique needs of its host communities. These serve as guiding principles behind
the company’s strategic business decisions, whether it be energizing economic
frontiers, promoting financial inclusivity especially in the countryside, or
building sustainable infrastructure. 

In support of the Global Goals, the company is focused on areas in its business
value chain such as providing access to affordable and clean energy (SDG 7),
contributing to food security (SDG 2), clean water (SDG 6), sustainable
communities (SDG 11), and development of innovative infrastructure (SDG 9)
while, at the same time, providing decent work (SDG 8) and managing impacts to
climate change (SDG 13), life below water (SDG 4), and life on land (SDG 15).

By Kahlil Carmona, Corporate Finance Manager, AEV
We at the AEV Investments and Corporate Finance Group almost always look
forward. We look for opportunities: deals and projects that can grow our
business and uplift communities in the next 10, 20, or even 30 years. Each
investment opportunity has many risks to look out for — will we get the tariff
that we want? Will we be able to keep costs down? Will we even get to finish
construction on time? 

Part of what makes these business cases quite daunting is that we need to firmly
believe that these expectations will materialize. And to get the Board's buy-in,
we need a robust plan to manage these risks either through getting more
information, transferring the risk via insurance, or simply by better managing
certain relationships.

> We were about to embark on a corporate version of the infamous meme that
compares expectations vs. reality.
But what if even after all that planning, our investments still underperform? 
Enter the Lookback Project — it’s time to diagnose. Here, we assisted Hedcor
then-President and COO Carlos Aboitiz in answering the question,“Where is the
cash that we expected in the last decade or so?” We were about to embark on a
corporate version of the infamous meme that compares expectations vs. reality.
It involved digging up archives for models and data that were formed at a time
when perhaps half of our team were still in high school.

What made this project particularly challenging, at least back then, was that it
started only a few days into the community quarantine last year, which meant
that 100% of the project had to be done online, and it was.  We found ourselves
arranging several Hangouts calls, one after the other – with the previous
modeler, colleagues from corporate, and even the grid managers who are hundreds
of kilometers away, some of whom were kind enough to accommodate us while they
were on the move. 

By the end of the first week alone, we had an inkling that we would get used to
these phrases that resembled a modern séance, “Are you there?” “Are you with
us?” “Can you hear me?” It didn’t stop with Hangouts though. Slides and Drive
also allowed us to seamlessly collaborate with teammates who aren’t even in the
same region. 

By the three-month mark, we were able to do a lookback analysis and present the
results of six Hedcor plants, thanks in no small part to the many teams in the
Hedcor Group from Finance to Corporate Services to Operations, as well as team
leaders and members who have since transferred to other SBUs.

> Hindsight is 20/20. From this project, it was clear what we could have done
better.
As for the result of the project itself, it highlighted a smorgasbord of issues
but we’ll discuss only three for brevity. For starters and perhaps the most
prominent of them all: we should not have counted on FiT (Feed-in-Tariff)
escalation. It was the Renewable Energy Act of 2008 that prescribed the rules on
FiT. In a bid to avoid being too technical, all you need to know are these: (a)
the initial rate was Php 5.900/kWh, (b) it was supposed to increase yearly
following a prescribed formula driven primarily by inflation, and (c) payment
should be prompt. We got A but not B and C: the best we were able to get was a
one-time price hike last year and even then, we were able to collect only after
months of delay. As to why – one is free to theorize.

The second one has more to do with on-the-job learnings or “tuition” as some of
our colleagues in project development prefer to call it. Longer buffers for
construction time and more funds set aside for contingencies should have been
factored in so we can absorb the major inconveniences in the form of design
changes, stakeholder conflicts, and unforeseen geotechnical conditions.

The third is currently ambiguous yet it is something that we wish we are able to
forecast more precisely. Aside from tariff, hydrology directly impacts the top
line. Too often have we seen insufficient water supply – as Hedcor parlance
calls it – as the reason for low production. While it can be attributed to
variations in weather, it did prompt a closer look into the way we forecast
water levels. Not all of the findings were bad though. We were able to recover
more VAT, we got taxed less, and we were able to manage some of the costs.

Hindsight is 20/20. From this project, it was clear what we could have done
better. While we can no longer take back our decisions on these past
investments, we have a better grasp on: (a) what challenges to look out for –
just because government set the rules does not mean it will implement them, (b)
how to address the problems we’ve seen – build in more generous contingencies,
and (c) identifying what processes warrant improvement – we need to further
scrutinize how we forecast renewable resources.

As for the lookback process that we developed, it can be easily and quickly
replicated for other Hedcor plants and even in other BUs that require a similar
analysis. It also paved the way for allowing them to come up with revised
returns expectations on our investments for planning and budgeting.

Time to take these learnings with us as we once again look forward as many
opportunities abound. Onwards and up!

Expectation vs Reality: A Look into Project Lookback

Insurance is one of the most valuable investments one can make toward a secure
financial future. This is especially important amid the COVID-19 pandemic, where
unforeseen events can happen at any time. Despite this uncertainty, many still
do not have an insurance policy in their name, and this can be attributed to the
fact that insurance is not a one-size-fits-all, which makes finding the right
product challenging for customers and providers alike.

As a first mover in the country's digital banking space, Union Bank of the
Philippines (UnionBank) continues to introduce pioneering solutions that address
the various pain points of customers when availing of financial services,
improving the overall experience for them. In line with this, the Bank has been
harnessing emerging technologies to help customers identify the insurance
product that can meet their individual needs.

Leveraging its expertise in data science and artificial intelligence (AI),
UnionBank has created an algorithm that better identifies customers who might
need life security coverage through bancassurance products depending on their
profile or background, and more importantly, find the right insurance product
tailored specifically to them.

To make the latter easier, the Bank created semi-fictional profile archetypes
based on existing customers, each with their own aspirations, pain points,
challenges, and income levels that are unique to them. With the help of the AI
algorithm, the Bank can better identify the archetype a potential customer may
fit into, such as “Mom Savers” and “Young Spender,” among others, and
proactively recommend insurance products that are more relevant to them.

> By harnessing AI, we have the ability to analyze data culled from various
sources–customer profiles, and past interactions, for example—and provide
tailor-fit recommendations on products and services that truly address our
customers' needs. 

—Joyce Gonzalez, Executive Vice President, UnionBank
The said algorithm is now being utilized in many of the Bank's offers, notably
through "Union for Life," a bancassurance partnership with Insular Life that
makes life insurance accessible to more people through UnionBank's expansive
branch network nationwide.

With the use of AI for identifying potential customers' insurance needs,
UnionBank is able to help provide insurance policies that are relevant to them
wherever they may be in life, whether starting out in their careers, starting a
family, or starting their retirement plans. Down the line, UnionBank sees the
algorithm being used in even more complex processes related to its insurance
offers, allowing deeper and more meaningful personalization for customers.

"UnionBank has always believed in the power of data science and AI to enable
lasting positive impact not just on the lives of customers, but also on society
as a whole. This is why we will continue to harness these and other emerging
technologies in many of our products and services, including insurance," said
UnionBank Senior Advisor for Data and Artificial Intelligence Dr. David Hardoon.
"This is all part of UnionBank's overall goal of enabling inclusive prosperity
by co-creating innovations for a better world."

UnionBank Strengthens Bancassurance Offers Through AI-Enabled Personalization

Edustria High School by FEU and T.I.P. is located within LIMA Central Business
District at ‘The Outlets at Lipa’.Despite the challenges students, teachers, and
schools are facing today with the ongoing pandemic, Edustria High School
(Edustria) continues to push for relevant education that can help support
economic recovery in Batangas and the Calabarzon region.

Edustria, a joint venture between the Far Eastern University (FEU) and the
Technological Institute of the Philippines (T.I.P.), aims to bridge education
and the industry by preparing its students for immediate employment, equipping
them with practical skills, knowledge, and values companies are looking for in
senior high school graduates who can potentially join their ranks. Companies and
locators nearby are guaranteed a reliable pool of talents that they can easily
tap.

It is open to Grade 7 to Grade 12 students, not just from Lipa City where it is
located, but as well as from Calabarzon through online and distance learning.
Students can avail of scholarships and discounts available for both Lipa and
non-Lipa residents. Senior High School Students can also apply for vouchers from
DepED with assistance from the school. Special discounts also await siblings and
children of employees of any establishment located in LIMA Estate.

Edustria is located within LIMA’s growing Central Business District, at ‘The
Outlets at Lipa,’ a premier lifestyle and leisure destination that complements
the primary industrial use of LIMA Estate in Lipa-Malvar, Batangas. Edustria is
only a few rides away from the towns of Santo Tomas, Tanauan, Malvar, and Lipa,
and is accessible via public transportation passing through the J.P. Laurel
Highway.

Quality and immersive education for the future

LIMA Estate is a 794-hectare Philippine Economic Zone Authority-registered
industrial-anchored development that is home to 130 international and domestic
locators, their 60,000 employees, and 2,500 households. It also has a 138-room
4-star hotel development and 167 shops located in its mall establishments.

As the Estate is currently developing its expansion areas, which is expected to
generate up to 20,000 new jobs for Batangas and neighboring areas upon
completion, Edustria is keen on leveraging the opportunity to supply the talent
needed by the businesses that will expand and settle in LIMA.

> “Edustria came in at the perfect time as we are ramping up our expansion at LIMA
Estate. This gives them a unique opportunity to mold young Batangeños amongst
some of the top multinational companies in the world,” said Rafael Fernandez de
Mesa, First Vice President of Aboitiz Integrated Economic Centers.
“The school will be able to give its students employment prospects as we
gradually head into recovery,” he added.

Moreover, because Edustria’s main objective is to provide industry-relevant
education that enables its students to achieve meaningful careers, economic
upliftment, and life aspirations, the school works with the existing local and
multinational companies in LIMA Estate to ensure that its students are
work-ready and have the best possible opportunities towards success. Students
have the chance to immerse or even land a job with one of the many companies in
the Estate.

> “More than producing a competitive, technology-based workforce, Edustria seeks
to contribute to nation-building by cultivating and optimizing the potential of
the Filipino youth and the local opportunities available for them. With the
track record of our mother institutions FEU and T.I.P., businesses can be rest
assured that our graduates will receive quality education,” said Engr. Jemuel
Castillo, Executive Director of Edustria High School.
Since Edustria offers enhanced academic strands (STEM or Science, Technology,
Engineering and Math, ABM or Accountancy, Business and Management, HUMSS or
Humanities and Social Science, and GAS or General Academic), its students are
capable of immediately pursuing a career after they graduate from high school.
After spending their time in the workforce, Edustria’s graduates can also choose
to seamlessly earn their college degree at either FEU or T.I.P., without any
entrance exams and with free bridging classes if needed.

Customized learning

In line with its adoption of ‘EduFLEx’, a flexible learning modality that
provides customized learning, Edustria currently uses the renowned Learning
Management System (LMS) Canvas to seamlessly bring learning to the comfort of
students’ homes. It is utilized by other prestigious institutions such as
Harvard University. The LMS is easy to use, and provides teachers and students a
good platform where engagement is dynamic and targeted. Canvas organizes the
students’ lessons for the day, and also sets their learning agenda for the
coming weeks.

For online or distance learning, Edustria uses the Learning Management System,
Canvas, which is also being used by Harvard University.Edustria is also ready
for the students’ return to face-to-face classes with its air-conditioned
classrooms, state-of-the-art science laboratories, modern multimedia equipment,
and WiFi hotspots across the campus -- all located within the vibrant
environment of ‘The Outlets at Lipa.’

Edustria is well-situated in the heart of LIMA Estate, surrounded by green
spaces, commercial developments, and local and multinational industrial
locators.As LIMA emerges as the leading integrated economic center in South
Luzon, Edustria is poised to become the foremost breeding ground for future
industry leaders.

Edustria High School by FEU and T.I.P. is still accepting students for School
Year 2021-2022. For more information on enrollment or corporate partnerships,
please visit http://edustria.edu.ph/ or contact them through: (0917) 154-0546
and marketing@edustria.edu.ph.

The Aboitiz Group, together with a coalition of public-private sector partners
under the Taskforce T3 (test, trace, treat), pledged support to the government’s
efforts to initiate the vaccination of the A4 priority sector.

The commitment was formalized on June 7 through a hybrid event held
simultaneously at the SM Mall of Asia in Pasay City and via virtual platform.
The program was led by the vaccination cluster of the National Task Force
Against COVID-19 led by DOH Secretary Francisco Duque and Vaccine Czar Secretary
Carlito Galvez Jr., in partnership with Taskforce T3.

Among those who took part in the ‘Commitment Ceremony & Ceremonial Vaccination
for A4’ were CEOs from the largest private companies and business organizations
in the Philippines. Maribeth Marasigan, Aboitiz Foundation President and Chief
Operating Officer, represented Aboitiz Group CEO Sabin Aboitiz in affirming
support for the A4 vaccination rollout initiative.

“We commit to educate and encourage our employees with the importance of getting
vaccinated against COVID-19,” stated the pledge. “And we commit to continue to
work hand in hand with the national government and the local government units
until the Philippines succeeds in achieving population protection.”

The Aboitiz Group, represented by Aboitiz Foundation President & COO Maribeth
Marasigan (second row, center), took part in an official ceremony that marked
the beginning of the government's expanded vaccination program which now
includes all economic frontliners from across industries.Those who will be
vaccinated under the A4 category include frontline personnel in essential
sectors and, according to COVID-19 Deputy Chief Implementer Vince Dizon, all who
need to be outside of residence for livelihood reasons including informal sector
workers.

> This marks a turning point in our efforts to bring COVID-19 under control.
Expanding vaccination coverage to include workers from across all industries is
our single most crucial step towards reopening a more inclusive economy. The
Aboitiz Group will continue to support our fellow Filipinos in taking full
advantage of this long-awaited opportunity to restore their livelihood

– Sabin M. Aboitiz, President and Chief Executive Officer, Aboitiz Group
Aboitiz believes close collaboration between the private and public sector is
vital in managing the current health crisis. Its latest efforts include
partnering with the National Economic Development Authority (NEDA) through the
Aboitiz Foundation and its pioneer data school, the Asian Institute of
Management-Aboitiz School of Innovation, Technology, and Entrepreneurship
(AIM-ASITE) in the development of an automated contact tracing system to
consolidate and fortify the national contact-tracing database.

“The Aboitiz Group fully embraces its role in nation building and its strong
partnership with the government.  We will continue to uphold our responsibility
to fill the gaps in resources to help address the great demands of serving our
people, especially during a crisis, and rise above the challenges as we drive
change for a better world by advancing business and communities,” Aboitiz said.

Aboitiz Pledges Support For Expanded Vaccine Rollout To Economic Frontliners

By Anna Carreon [https://aboitiz.workplace.com/profile.php?id=100024149732481]

Pilmico Foods Corporation was among the winners at the first Europa Awards given
by the European Chamber of Commerce of the Philippines (ECCP). The company took
the prize in the Sustainable Food and Nutrition category for Project Silk, its
inclusive agribusiness program that provides end-to-end support to community
enterprises to transform them into efficient, profitable, and growing
businesses.

Tristan Aboitiz, President and CEO of Pilmico Foods Corporation, accepted the
award at the virtual awarding ceremony held on June 10. 

“We started Project Silk back in 2017, with the goal to support and empower
local corn farmers in Bukidnon by transforming their livelihood into a more
sustainable and profitable endeavor,” he explained. “The idea was to directly
source yellow corn from local farmers’ cooperatives in an effort to secure a
portion of our corn requirements for our feed milling business, and to do so at
values that reflected the hard work put in by the farmers and their families to
raise those crops and get them ready for consumption.”

TRA paid tribute to the project's beneficiary, Mantibugao Agrarian Reform
Beneficiaries Farmers Cooperative (MARBFC), sharing that its success has led to
the launch of similar initiatives in Lanao del Norte and Misamis Oriental. 

Project Silk also facilitated learning sessions to help develop the financial,
entrepreneurial, and managerial competencies of its partners in order to improve
their overall business acumen. 

Pilmico is set to expand Project Silk to link more local corn consumers to a
greater number of farmer cooperatives and associations as it works with fellow
stakeholders in the government’s Pilipinas Kontra Gutom (PKG) initiative. Being
a Partner for Growth for its community, the company continues to improve on its
alignment with the UN Sustainable Development Goals — more specifically, SDG 2
(Zero Hunger) — by contributing to the country’s food security while
strengthening its environmental, social, governance (ESG) performance and drive
positive change.

> I want to thank our team members who have spent many days of their lives working
to ensure the success of this program...you that truly deserve the recognition
for this. I am very proud of the work we’ve done so far and we hope that [the
project’s] successful roll-out in Mindanao will serve as a model for more of
these kinds of partnerships being established around the Philippines in the
future.

– Tristan Aboitiz, President & Chief Executive Officer, Pilmico
According to the ECCP, the Europa Award for Sustainable Food and Nutrition
recognizes companies that have contributed to the enhancement of the food
industry by offering innovative products and services that promote sustainable
food systems in the Philippines.

The ECCP’s Europa Awards seeks to promote and recognize companies with
“exceptional performance and contributions in promoting sustainability” in
keeping with global standards and the Philippine Development Plan.

Food

Pilmico's Inclusive Corn Sourcing Program Wins At Inaugural Europa Awards

by Romeo L. Bernardo, Independent Director, AEV
This article was originally published in BusinessWorld under Mr. Bernardo's
‘Introspective’ column on April 4, 2021. We are sharing here for learning and
enrichment of our Aboitiz team members.
[https://www.bworldonline.com/renewable-energy-a-revisit-pt1/] 



In my column a decade ago, “Renewable energy – reality check”
[https://www.fef.org.ph/fef/renewable-energy-reality-check/], I chided the
private proponents of new renewable energy (RE) technologies (solar, wind, and
biomass), the National Renewable Energy Board (NREB), and multilateral
institutions for pushing an expensive Feed in Tariff (FIT) program on the
Philippines on the grounds that we need to do this as our contribution to
averting a climate change catastrophe. This notwithstanding our global carbon
emission contribution being a rounding error (0.3 of 1%), and our RE mix then at
42% of total power generation capacity, is four times the global average.

I noted in my article then that this would have burdened us with 20-year supply
contracts with power costs that were equivalent to PHP10 to PHP25 per kWh, twice
to five times avoided cost. This is not even counting the cost of ancillary
power standby to cover for RE intermittency (when there is no wind or when it is
cloudy) and their needed transmission and distribution infrastructure.

Thanks to the advocacy on behalf of consumers and taxpayers by the Foundation
for Economic Freedom, the PCCI, and the wise intervention of then-Senate Energy
Committee Chair Serge Osmeña, the final FIT rates were negotiated down
substantially.

Fast forward 10 years to today, and we find that just counting the direct cost
of FIT subsidy payments to RE providers now runs at PHP20 billion annually. For
perspective, this is the equivalent to conditional cash transfer social
assistance for 10 million poorest people in 2019, and is around the annual
budgets of each of the following executive departments: Environment and Natural
Resources, Finance, Foreign Affairs, Justice, and Science and Technology. And
PHP20 billion is an annual number; for the long-run cost, multiply this by 20
years, the contract period.

Since then the prices for solar, especially of solar panels, have dropped; is it
now time to embrace them unqualifiedly? And should government mandate them
through quotas like Renewable Portfolio Standards (RPS), excise taxes like the
recent coal tax insertions in TRAIN 1 (see my column
[https://www.bworldonline.com/gravy-train-leaving-common-sense-isnt/]), or
restrictions on building new fossil plants?

Consider: if indeed the drop in RE prices and technology improvements now make
them commercially competitive with fossil fuels as contended by their champions,
there should be no need for more subsidies, direct or hidden: No FIT, no quotas
and no taxes and bans on coal. (Riding on this lobby are the advocates of
natural gas, passing it off as green and renewable, even while gas has half the
carbon footprint of coal, and is not renewable.)

Precisely because such non-technology neutral government interventions are an
override on market competition, they have the effect of raising the cost of
power, particularly immiserating for a country like the Philippines that has yet
to develop a manufacturing base to absorb the millions of jobless. Manufacturing
requires base load plants which today, setting aside controversial nuclear
plants, can only be driven by fossil fuels.

How high is that cost burden now? To illustrate further, compare the current FIT
rates for solar and wind of P8 to P10 per kWh for 20 years versus the
competitively bidded cost of PHP4.15/PHP4.26 per kWh in the recent CSP bidding
of Meralco. (“SMC units submit lowest bids for 1,800 MW Meralco supply deal
[https://www.bworldonline.com/2-smc-units-submit-lowest-bids-for-1800-mw-meralco-supply-deal/]
”, Feb. 20).

And what have we got to show for this heavy cost? Very little. This conclusion
is validated by a study of Dr. Josef Yap (“Evaluating the Feed-in Tariff Policy
in the Philippines”
[https://papers.ssrn.com/sol3/papers.cfm?abstract_id=3520401]), that even with
energy subsidized through the FIT, end users still face a net higher cost,
despite this so-called merit order effect of RE. (Any power supply contract with
lower marginal cost than peaking plants will have identical effect, and is not
unique to RE).

> Consider: if indeed the drop in RE prices and technology improvements now make
them commercially competitive with fossil fuels as contended by their champions,
there should be no need for more subsidies, direct or hidden...
Moreover, solar and wind generation together only account for 2.4% of total
generation. The bulk of our RE still comes from traditional renewables, hydro
and geothermal (20%) that do not enjoy, nor lobby for, such subsidies or quota
mandates.

This heavy public cost of supporting such expensive RE is mirrored at the global
level in states and countries that embraced such policies versus those who
didn’t.

Electricity prices in RE-supportive California rose five times more than the
rest of the US. German electricity prices rose 51% from 2006-2018, and now
stands at twice the level of France which is mostly nuclear powered. In Fact,
Germany now depends on France to stabilize their RE-heavy and thus unstable
grid.

Don’t get me wrong about RE. It has a role in energy provision for the
Philippines – it already does! But poorly designed public policies to promote RE
can have damaging effects on how our energy markets work, and that has led to
higher prices for Filipinos, poor use of public funds, and misinformation about
the necessary role thermal energy has in powering this country’s economy. If the
government wants to play a role, just be sure to do so only where it is needed,
and follow the Hippocratic oath of our caring doctors and nurses when designing
public policy: “Do no harm”

Climate Change Adaptation Vs Mitigation
On the point about “only where it is needed” let’s consider adaptation versus
mitigation, and what makes sense for the Philippines. In Paris in 2015, the
Aquino administration committed our country to reduce our greenhouse gas
emissions by 70% by 2030, an ambitious, costly and unrealistic target. The
Climate Change Commission said the country needs to spend USD12 billion to USD15
billion, or PHP584 billion to PHP730 billion, to reduce up to 70% of its
emissions. A staggeringly large number equivalent to 3.25% to 4% of our GDP.

> This heavy public cost of supporting such expensive RE is mirrored at the global
level in states and countries that embraced such policies versus those who
didn’t.
This likely does not even fully reflect the higher cost of power and the cost of
managing intermittency discussed earlier. And as I argued, THIS yields very
little for the country and our people. (Maybe except green bragging rights? But
that is like asking a poor man to wear an Armani suit which he cannot afford and
which is inappropriate for his tropical climate just so he can look fashionable
in the eyes of the world.)

I have been following the Facebook page of Finance Secretary Sonny Dominguez,
newly designated chairman of the Climate Change Commission. An astute fiscal
manager of our country’s scarce resources who deeply cares for our people, he
quickly pivoted away from the climate change mitigation chorus and into grounded
actionable climate change adaptation programs.

And I quote:

“Why does the Philippines focus more on climate adaptation rather than
mitigation?

“Despite the Philippines being one of the lowest contributors to global
GreenHouse Gas Emissions (GHGs) at around 0.3%, we are still one of the most
vulnerable countries to the effects of climate change.

“This is why our climate action efforts focus more on climate adaptation rather
than mitigation. We need to adapt and be prepared for the harmful effects of
natural disasters (e.g., typhoons, drought, rising ocean temperatures, etc.)
brought about by climate change.” ( Source: Department of Finance Facebook page)

Amen!

The Climate Change Commission may have reaffirmed, even strengthened, its 2015
commitments, perhaps before Secretary Dominguez assumed its chairmanship. My
appeal: please review and align with your most recent sound pronouncements,
Secretary Sonny?

Renewable Energy, A Revisit

City Savings Bank, Inc. [https://www.facebook.com/citysavingsbankofficial] 
(CitySavings) continues to create innovative solutions for customers amidst the
COVID-19 pandemic. The Bank focuses on addressing the urgent need of customers
for financial services through its relevant products and digital channels.

> CitySavings has always been very customer-centric and I believe that
customer-centricity is essential as one digitally transforms. This is vital in
realizing CitySavings’ vision to be the leading mass market bank in the
Philippines.

– Lorenzo Ocampo, President and CEO, CitySavings
Visa Debit Card

CitySavings started the rollout of its own Visa Debit Card last year as a safer
and more convenient channel to transact online. To date, more than 75,000 of the
Bank’s clients have switched to the new Visa Debit card. All savings account
holders are expected to be fully re-carded by October 2021.

LEVEL UP WITH VISA DEBIT CARD: CitySavings’ roll out of the Visa Debit Card
makes the clients’ online transactions safer and more convenient.Talk to Maria
Talk to Maria [https://www.facebook.com/TalkToMaria.CitySavings], CitySavings’
official chatbot provides a quick and easy way for new clients to apply for a
loan online from the comfort of their own home. Maria, who acts like a 24/7
sales associate, has the ability to provide information on product and
service-related inquiries, bank advisories as well as ATM and branch locations.

TALK TO MARIA: CitySavings’ official chatbot provides 24/7 service for clients
who have inquiries and a quick and easy way to apply for a loan online.Pre-loved
Motorcycle Units for Frontliners
The Bank also recognizes the huge demand for motorcycle loans needed for
socially distanced, convenient, and affordable transportation. It recently
launched its 0% interest installment product for education and medical
frontliners which allows them to avail of pre-loved motorcycle units at zero
interest payable in 12, 18, and 24 months. Click here to know how to apply.
[https://www.facebook.com/citysavingsbankofficial/posts/1457400967935485]

PRE-LOVED MOTORCYCLES: CitySavings recently launched its 0% interest installment
product for education and medical frontliners which allows them to avail of
pre-loved motorcycles.Relevant and Accessible Corporate Social Responsibility
(CSR) Programs
In response to the Department of Education’s (DepEd) call for support from
stakeholders, the Bank has pivoted most of its corporate social responsibility
(CSR) programs to make them relevant and accessible online. CitySavings
continues to enhance its capability-building programs to support educators in
transitioning to blended teaching and learning modalities. The Bank currently
provides tools and courses to upgrade educators’ online teaching skills through
Project Agile: Learning Series for Teachers and HEROES 2021 (Help Educators Rise
to Online Education SY 2020-2021) in partnership with Thames International
School, EduRescue Philippines, and Akadasia Singapore. To date, over 200,000
educators have benefitted from these intensive online training programs.

The Bank is also focused on providing other learning opportunities for educators
specifically on financial health as well as physical and mental well-being. One
of its core programs, Project Peraparasyon, is instrumental in strengthening the
Bank’s advocacy on financial literacy to educators and non-teaching personnel
across the country. The program highlights the simple steps on saving, building
an investment, and managing debt as keys to practical wealth management.

CitySavings partnered with MentalHealthPH and introduced Project #BetterMe, a
mental wellness program for our frontliners in education. This initiative aims
to help teachers develop self-care strategies and provide practical ways to take
better care of their mental well-being amidst the challenges they face in the
new normal.

Despite the challenges brought by the pandemic, CitySavings stays true to its
promise of straightforward banking through innovative products for its clients
and sustainable CSR programs for its communities.

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