enabling sustainability - Aboitiz Power

Enabling Sustainability 

enabling sustainability 

s u s t a i n a b i l i t y r e p o r t 2 0 1 0 

SUSTAINABILITY REPORT 2010

Table of Contents 

SECTION SUB-SECTION GRI-DISCLOSURE PAGE 

MESSAGE FROM 

CHAIRMAN AND 

PRESIDENT & CEO 

1.1 

4-5 

ABOUT THE ABOITIZ 

GROUP 

2.1 - 2.4 

6-7 

ABOUT THIS REPORT 

2.3, 2.7, 2.9,3.1- 3.8 

8 

BUSINESS AT A 

GLANCE 

EC1-EC2 

9 

ABOITIZ 

SUSTAINABILITY 

3.7 

A snapshot of Aboitiz 

sustainability 

EN 5 – EN 7, 

EN 14 – EN 18 

10 

Aboitiz sustainability pillars 

11 

GOVERNANCE 

4.1 – 4.4; 

12 

OUR STAKEHOLDERS 

4.14 – 4.15 

13 

REJUVENATE NATURE 

14 

VECO refo park 

Simultaneous tree planting 

EN 13 - EN14 

15 

Hedcor watershed 

management 

REDUCE 

Race To Reduce 

EN5 – EN7 

16 

Soy-based dielectric fluid 

Race To Reduce run 

17 

An hour for Earth Hour 

Pilmico energy conservation 

18 

Carbon emissions 

RE-USE / RECYCLE 

Re-use & recycle 

EN 26 

19 

Art that feeds families 

RENEWABLE ENERGY 

Renewable energy mix 

EN 6 

20 

RECHARGE COMMUNITIES 

Earth Day clean up 

Recharge communities 

Employee development 

Corporate Social 

Responsiblity (CSR) 

LA 1, LA3, LA 11, SO1 

21 

22-23 

24 

25-26 

OUR COVER 

Sustainability holds the vision of our youth for a future lush in biodiversity and with enough resources 

to satisfy their needs and of those who will come after them. The Aboitiz Group is committed to 

realize this vision through various Sustainability efforts implemented among the business units. 

2 ENABLING SUSTAINABILITY

GRI G3 Level C Disclosures 

1.1. 

STRATEGY AND ANALYSIS 

Statement from the most senior decision maker of the 

organization about the relevance of sustainability to the 

organization and its strategy 

ORGANIZATIONAL PROFILE 

2.1. Name of organization 

2.2. Primary brands, products and / or services 

2.3. Operational structure of the organization, including main 

divisions, operating companies, subsidiaries and joint ventures 

2.4. Location of organization’s headquarters 

2.5. Number of countries the organization operates 

2.6. Nature of ownership and legal forms 

2.7. Market served (including geographic breakdown, sectors served 

and types of customers / beneficiaries) 

2.8. Scale of the reporting organization, including: 

Number of employees 

2.9. Significant changes during the reporting period 

2.10. Awards and recognitions received during the reporting period 

4.1. 

4.2. 

4.3. 

4.4. 

EC1 

EC2 

GOVERNANCE 

Governance structures of the organization, including committees under 

the highest governnace body responsible for the specific tasks, such as 

setting strategy or organizational oversight 

Indicate whether the Chair of the highest governance body is also an 

executive officer (and, if so, their function within the organization’s 

management and the reasons for this arrangement) 

Number of independent and non-executive members 

Mechanisms for shareholders and employees to provide recommendations 

or direction to the highest governance body 

4.14. List of stakeholders groups 

4.15. Basis for identification and selection of stakeholders groups 

ECONOMIC PERFORMANCE 

INDICATORS 

Direct economic value generated 

Financial implications and other risks and opportunities for the 

organization’s activities due to climate change 

3.1. 

3.2. 

3.3. 

3.4. 

3.5. 

3.6. 

3.7. 

3.8. 

3.11. 

3.12. 

REPORT PARAMETERS 

Reporting period (fiscal / calendar year) for information provided 

Date of most recent previous report (if any) 

Reporting cycle (annual, biennial, etc) 

Contact point for question regarding the report and its contents 

Process of defining report content, including: 

Determining materiality 

Prioritizing topics within the report, 

Identifying stakeholders the organization expects to use the report 

Boundary of the report (subsidiaries, joint ventures, etc) 

Limitations on the scope and boundary of the report 

Basis for reporting on joint ventures and subsidiaries 

3.10. Explanation of the effect of any re-statements of 

information provided in earlier reports, and the reasons for 

such re-statement 

Significant changes from previous reporting period 

Table identifying standard disclosures of report 

EN5 

EN6 

EN7 

EN13 

EN14 

EN16 

EN18 

EN26 

ENVIRONMENTAL PERFORMANCE 

INDICATORS 

Energy saved due to conservation and efficiency improvements 

Initiatives to provide energy efficient or renewable energy based products 

and services, and reduction in energy requirements as a result of these 

initiatives 

Initiatives to reduce indirect energy consumption and reductions achieved 

Habitats protected or restored 

Strategies, current actions, and future plans for managing impacts on 

biodiversity 

Total direct and indirect greenhouse gas emissions by weight 

Initiatives to reduce greenhouse gas emissions and reductions achieved. 

Initiatives to mitigate environmental impacts of products and services, 

and extent of impact mitigation 

Economic Performance 

Labor practices 

Reports intended to 

qualify for level C, 

C+, B, B+, A or A+ 

must contain each 

of the criteria that 

are presented in 

the column for the 

relevant level. 

APPLICATION LEVEL CRITERIA 

Report 

Application Level 

G3 Profile 

Disclosures 

G3 Management 

Approach 

Disclosures 

G3 Performance 

Indicators & 

Sector Supplement 

Performance Indicators 

STANDARD DISCLOSURES 

OUTPUT 

Report on: 

1.1 

2.1 - 2.10 

3.1 - 3.8, 3.10-3.12 

4.1 - 4.4, 4.14 - 4.15 

LA1 

LA3 

LA11 

SO1 

RECHARGE COMMUNITIES 

INDICATORS 

Total workforce by employment type, employment contract 

Average hours of training per year per employee by employee category 

Benefits provided to full-time employees that are not provided to 

temporary or part-time employees, by major operations 

Programs for skills management and lifelong learning that support the 

continued employability of employees 

Nature, scope and effectiveness of any programs and practices that 

assess and manage impacts on communities 

C C+ B B+ 

A A+ 

Not Required 

Report on a minimum of 

10 Performance Indicators, 

Including at least one from 

each of: 

• social 

• economic 

• environment 

REPORT EXTERNALLY ASSURED 

Report on all criteria listed 

for level C + 

1.2 

3.9, 3.13 

4.5 - 4.13, 4.16 - 4.17 

Management Approach 

Disclosures for each 

Indicators Category 

Report on a minimum of 

20 Performance Indicators, 

Including at least one 

from each of: economic, 

environment, human rights, 

labor, society, product and 

responsibility 


Same as requirement for 

Level B 

Management Approach 

disclosed for each 

Indicator Category 

Respond on each core G3 

and Sector Supplement* 

indicator with due regard 

to the materiality Principle 

by either: 

• reporting on the indicator 

• explaining the reason for 

its ommission 


ABOITIZ SUSTAINABILITY REPORT 2010 

3

Message from 

Chairman and President & CEO 

Dear Fellow Stakeholders, 

Sustainability in the Aboitiz Group can be summarized as its pursuit of good growth fueled by the 3P balance 

of Profit, or sound economic fundamentals; People, or social development; and Planet, or environmental 

stewardship. Good growth implies an accountability to satisfy the needs of current stakeholders without 

compromising the future generation’s own necessities. 

We do not think sustainability has to come at the expense of our 

bottom line, nor do we think they are necessarily uncertain or 

long-term investments. In fact, we see sustainability as a way of 

minimizing risk and strengthening our competitive advantage as 

we gain social acceptance, become a more attractive employer, 

build consumer loyalty and draw investor interest. The 3P balance 

will guide our path towards continued success in the future by 

compelling us to consider success from a broader viewpoint. 

This report, which is now on its second year and will always be 

a work in progress, is useful not just as a tool for keeping track 

of our various sustainability-related efforts but also to see the 

evolution of the Group’s collective efforts towards incorporating 

more sustainability practices in the way we do business. 

2010 was a successful year for the Group in more ways than 

one. In terms of business performance, it was a banner year and 

we matched this economic gain with social and environmental 

initiatives that benefited our other stakeholders. As such, we were 

able to substantially address the 3Ps last year. 

The Group’s remarkable economic performance allowed us to 

expand our reach for social development. Our CSR interventions, 

through the Aboitiz Foundation and our local business units, were 

at a record high. We reached out not only to communities where 

Aboitiz companies operate but also in areas across the country 

where we sell our generated power. While education still remains 

the biggest focus area among our initiatives, we grew our micro 

finance portfolio and increased our involvement in environmentrelated 

projects in 2010. 

The Aboitiz Sustainability Team pursued its Group-wide campaign 

to increase awareness in identifying and measuring the carbon 

footprint of our operations as well as the activities of individual 

team members. The campaign aims to institute changes with the 

end goal of reducing our environmental impact. 

The Group’s flagship sustainability project, Race to Reduce, 

won the top prize in the environmental excellence category of 

the Asian CSR Awards in Kuala Lumpur, and also earned an Anvil 

Award of Merit. This Group-wide resource conservation awareness 

program encourages our business units to reduce consumption of 

electricity, water and paper. 

Over the past few years, we have been using recycled paper for all 

Aboitiz annual reports, our internal newsletter Aboitiz Eyes, and 

official stationery. This year, we significantly reduced the number 

of printed copies of the SEC Form 20-IS (Information Statement) 

and Annual Report that we send out yearly to thousands of Aboitiz 

Equity Ventures and AboitizPower stockholders. We instead 

saved soft files of the report in CDs, and it is estimated that for 

every 50 reports unprinted, we saved one tree. Across the Group, 

it has become standard practice to use double-sided printing 

whenever possible or the use of scratch paper for internal printing 

requirements. 

To reduce traveling among our team members for meetings in 

various parts of the country, offices across the Group have put 

in place 22 videoconferencing rooms as of yearend 2010. This 

technology-driven solution not only saves time and travel costs 

but also reduces the team members’ carbon footprint while at the 

same time increases their productivity. 

In 2010, we launched a consolidated biodiversity enhancement 

program that we call APark, which brings together the various 

efforts of our business units along these lines. APark envisions 

three million trees thriving nationwide by 2015 and sequestering 

69,000 tons of carbon dioxide annually. As of yearend 2010, 1.2 

million trees have already been planted. 

Today’s talent pool assigns value to employers with a strong 

sustainability program, which enhances employer brand and helps 

attract new talent. In Aboitiz, our various sustainability programs 

foster team member participation and as their involvement 

deepens, they become ambassadors of change in their own little 

way. Anything we do, no matter how small, can institute change 

to protect Mother Earth. 

What we consider to be the Aboitiz Group’s major contribution to 

the health of our planet is our promotion of competitive renewable 

energy in the country being carried out in both the supply and 

demand side. 


On the supply side, AboitizPower generated 4.4 billion kWh of 

energy from our geothermal and hydro power plants, representing 

45% of total generation from our power portfolio for 2010. This 

allowed electricity users the chance to utilize renewable energy, 

which leaves a lighter impact on the planet. 

In 2010 we commissioned the 42.5 MW Sibulan run of river 

hydroelectric plant in Mindanao. The clean energy generated 

from this plant will reduce greenhouse gas emissions by more 

than 95,000 TCO2e (tons of carbon dioxide equivalents) 

annually by displacing energy that would have come from fossil 

fuel-fired power plants. To expand our capacity in renewable 

energy, AboitizPower is currently developing four run of river 

hydroelectric plants with a total capacity of 29 MW. These will 

break ground in 2011. 

AboitizPower is also very active in rehabilitating existing power 

plants in order to optimize their generating capacity. The best 

example of this effort is the rehabilitation works at the Ambuklao 

hydro power station. After being out of commission for many 

years, the Ambuklao plant will finally start operating again in the 

second quarter of 2011, this time with a capacity of 105 MW, higher 

than its original capacity of 75-MW. Rehabilitation work on the 

Binga hydro plant and the Tiwi-Makban geothermal facilities are 

currently also underway. 

On the demand side, approximately 46% of the power sold by 

our distribution utilities in 2010 came from renewable sources. 

Our power marketing team also made Cleanergy available to 34 

distribution and institutional clients nationwide allowing them 

to make a responsible choice of buying renewable energy. It is 

our vision to make Cleanergy, AboitizPower’s brand of clean and 

renewable energy, available to all Filipinos once the Green Energy 

Option as envisioned by EPIRA is implemented. 

We are grateful to all of our stakeholders, all of whom we consider 

our partners, for their valuable support to our sustainability efforts. 

We will explore more initiatives, hoping to inspire others to be part 

of our advocacy, and do their share for a healthier environment. 

We will continue to build on those partnerships for the benefit of 

our future generations and our planet Earth. 

The Aboitiz Way is about promoting good growth that is 

economically, socially and environmentally sustainable. 

Please join us. 

Our main contribution to the health of the 

planet has to be the promotion of competitive 

renewable energy in the country. 

Jon Ramon Aboitiz 

Chairman of the Board 

Erramon I. Aboitiz 

President & CEO 


5

Aboitiz Equity Ventures’ mission is 

“To create long-term value for all its stakeholders”. 

The Aboitiz Group has businesses in seven major areas: power, 

banking, transport, food, land development, construction and 

shipbuilding. 

Aboitiz & Company, Inc. is the private holding company of the 

Aboitiz Group in the Philippines. To fund growth opportunities, 

Aboitiz & Company enlisted the Aboitiz Equity Ventures (AEV) 

1994 at the Philippine Stock Exchange as the holding company for 

its power, banking, food and transport businesses. 

Aboitiz Equity Ventures’ mission is “To create long-term value 

for all its stakeholders”. In 2007, AEV listed its wholly owned 

subsidiary Aboitiz Power Corporation (AboitizPower) at the 

Philippine Stock Exchange to provide the company with the 

financial flexibility to take advantage of growth opportunities in 

the local power sector. 

In Banking, AEV is the largest shareholder of UnionBank, a 

publicly-listed universal bank that consistently ranks among the 

top banks with key performance ratios in profitability, liquidity, 

solvency and efficiency. It is a pioneer in the application of 

information technology in banking services. 

AEV, AboitizPower and UnionBank have been recognized as among 

Asia’s best-managed companies. 

AEV also owns City Savings Bank, a leading thrift bank based in 

Central Philippines. 

Other core investments under Aboitiz & Company are in land 

development, construction and shipbuilding. 

An integral part of the Aboitiz corporate philosophy is its 

commitment to Corporate Social Responsibility. Through the 

Aboitiz Foundation, Inc., all Aboitiz companies contribute yearly a 

percentage of their profits to the foundation. Its projects focus on 

education, enterprise development, primary health and childcare, 

and the environment. 

In 2010, the international financial magazine Asiamoney 

recognized AboitizPower as Best Large Cap Company in the 

Philippines and AEV president and CEO Erramon I. Aboitiz as Top 

Executive for the year. 

The group’s sustainability program, Race To Reduce Challenge 

was also recognized as the winner in the Environmental Excellence 

category of the Asian CSR Awards 2010 in Kuala Lumpur, Malaysia. 

The same program also garnered an Anvil Award of Merit given by 

the Public Relations Society of the Philippines. 

Today, with over a century of service to the Filipino nation, the 

Aboitiz Group is stronger than ever, moving as one across 7 

industries, relentless in their collective pursuit of one vision, fueled 

by the enduring legacy of a trusted brand name that resonates the 

Aboitiz way. 

In Food, Pilmico Foods Corporation is among the country’s top 

three flour milling companies, and leads in operating efficiency. 

Its wholly owned subsidiary Pilmico Animal Nutrition Corporation 

operates a feed milling and swine growing business. 


Aboitiz Group 

2010 

AboitizPower 

COAL 

THERMAL 

SERVICES 

RENEWABLE 

DISTRIBUTION 

LUZON 

Aboitiz Equity Ventures 


Aboitiz Jebsen 

Aboitiz Foundation 

City Savings Bank 

Pilmico Animal Nutrition 

UnionBank 

MANILA 

VISAYAS 

Aboitiz Equity Ventures 

Aboitiz and Company 


Aboitiz Construction Group 



UnionBank 

CEBU 

MINDANAO 




Pilmico Food 

UnionBank 

DAVAO 


7

About Aboitiz 

Sustainability Report 

Sustainability is a core pursuit for the Aboitiz Group. In 2010, we 

released our first sustainability report. It documented the various 

sustainability initiatives of our business operations --- raising 

awareness about addressing environmental and social concerns, 

and communicating to our stakeholders our programs and activities 

towards business sustainability. 

This second sustainability report encapsulates the various sustainability 

programs and initiatives undertaken from January 1 to December 31, 

2010. Developed to conform to Global Reporting Initiatives (GRI) G3 

guidelines, this report is a self-declared C-level document and contains 

indicators on economic, social and environmental performance. Last 

year, too, we formalized our five sustainability pillars as guidelines for 

the business units’ own sustainability programs. 

This report features the projects and programs in support of each pillar. 

It does not tackle details of every subsidiary. This report also covers 

initiatives and performance of the different companies under the 

Aboitiz group. Aboitiz Equity Ventures, Inc. (AEV) in 2010 including 

Aboitiz Power Corporation 

a publicly owned holding company listed with the Philippine 

Stock Exchange that includes energy generation (hydroelectric, 

geothermal and thermal power) and distribution utilities. 

Food 

includes Pilmico Foods Corporation and Pilmico Animal 

Nutrition Corporation. 

Banking 

UnionBank of the Philippines and City Savings Bank. 

Aboitiz Transport System 

Aboitiz Transport System was sold at the end of 2010. However, 

it is mentioned in this report since it was still part of the group 

in 2010. 

Our financial and economic performances are discussed 

in detail in the 2010 Annual Report while our different 

corporate social responsibility activities are listed in the 

annual report of Aboitiz Foundation. Both reports may be 

accessed at www.aboitiz.com. 

Through this report we thank our markets, public and 

stakeholders, and reiterate our commitment to and sincerity in 

protecting the planet and its resources, our communities and 

stakeholders. We will also monitor and track our impact on the 

triple bottom line objectives of sustainability. We would also 

value your feedback on how to improve future reports. We are 

reachable at sustainability@aboitiz.com. 

A thorough discussion of AEV and all its business partners, 

subsidiaries and affiliates can be found in the annual report and 

the company website, www.aboitiz.com. 


Business at a Glance 

Our businesses turned in strong 

operating results. We continue to be 

guided by our investing discipline 

and strict adherence to our agreed 

cost of capital. 

In 2010, Aboitiz Equity Ventures (AEV) marked substantial 

growth. AEV’s net income grew by 163% to P 21.9 billion, 

with the power, banking and food companies as robust 

contributors. 

In 2010, AEV recorded a bellweather year in terms of 

profitability, with three out of four business units registering 

income contribution growth, AboitizPower bolstered the 

2010 bottomline with its 87% contribution, followed by 

UnionBank and City Savings Bank with 12 %, and Pilmico 

Corporation with 7 %. 

AEV President and CEO Erramon I. Aboitiz said, “Our businesses 

turned in strong operating results. We continue to be guided 

by our investing discipline and strict adherence to our agreed 

cost of capital.” 

For a comprehensive view of the Aboitiz Group’s financial 

performance, read the AEV Annual Report in www.aboitiz.com 


9

A snapshot Of Aboitiz sustainability 

As a responsible business organization with a passion for a better 

world, the Aboitiz Group decided to integrate the concept of 

sustainability into the operations of all its business units. The 

concept is based on the triple bottom line approach wherein the 

organization conserves the Planet and safeguards the People it 

serves while ensuring Profit from its different ventures. 

Sustainability, the Aboitiz way, is hinged on five pillars: Rejuvenate 

nature, Reduce use of resources, Recycle/re-use, Recharge 

communities, and use or generation of Renewable energy. 

The Aboitiz Group has, thus, devised many ways to reduce 

consumption and the volume of waste it generates. One way 

is holding video conferences instead of actual get-together 

meetings, which cuts down expenses but also reduces the Group’s 

total carbon emissions. 

Another measure was the issuance of just two company shirts 

that team officers and players are required to wear in company 

activities. In the past a shirt was issued for every company activity. 

Team leaders and members are encouraged to turn off unnecessary 

lights and air condition systems, to conserve water and use scratch 

paper whenever possible. 

To encourage everyone in the Group to participate, the Aboitiz 

Equity Ventures (AEV) Sustainability Team launched the Race to 

Reduce (R2R) challenge, which rewards business units that have 

made deep cuts in resource consumption (energy, water and paper). 

Recycling/re-use supports the goal to reduce resource use and 

waste which, in the long run, mean savings for the Group. Using 

both sides of a piece of paper, for instance, not only saves trees 

and energy used in paper production, but also reduces company 

expenditures. 

To make communities realize that there is money in recycling, the 

Group launched a project that converts its marketing collaterals, 

specifically tarpaulins, into other practical products. Host 

communities make bags and wallets out of the used tarp. City 

Savings Bank, for instance, used these as corporate tokens, thus 

making the project self-sustaining. 

Aboitiz Foundation continues to strengthen Corporate Social 

Responsibility with projects in the education, primary health, 

enterprise development, primary health and child care. 

In its year-long run, the effects of R2R can be observed in Groupwide 

consumption of energy, water and paper. 

Conscious efforts by individual members of the Group to cut down 

resource consumption have caused energy use in December 2010 

to drop to 417 kilowatt-hours (kWh) per person from 449 kWh per 

person in August of the same year. 

For the same month, Group-wide water consumption also dropped 

to 5.79 cubic meters per person compared to 6.62 cubic meters in 

August 2010. 

Paper usage was also reduced to 0.32 reams per person last 

December against 0.60 per invidual in August 2010. 

Enabling a groupwide sustainability campaign is a challenge but in 

the Aboitiz Group, Sustainability Stewards in the different business 

units are a big help. These stewards implement sustainability 

programs in their respective companies and closely coordinate 

with AEV’s Sustainability Team. 

COMPANY 

APRI Tiwi 

APRI Makban 

Hedcor 

LHC 

SNAP 

Davao Light 

VECO 

Cotabato Light 

SEZ 

MEZ/BEZ 

UnionBank 

CitySavings 

Pilmico Foods 

Pilmico Animal Nutrition 

ATS 

AboitizLand 

Metaphil 

Abojeb 

STEWARD 

Esmeraldo Martin 

Merly Navarette 

Junessa Guimala 

Gilbert Patacsil 

Nomer Reynaldo 

Fedy Cabalhin 

Jeff Belotindos 

Jun Ticzon 

Jay Navarro 

Roland Petilo 

Pinky Razon 

Harry Abellana 

Michael Abong 

Ronel Dizon 

Jay-Anne Encarnado 

Marissa Codiñera 

Rene Siega / Eloisa Resma 

Araceli De Guzman 

Since its various business operations continue to have an 

impact—no matter how minimal—on the environment, the 

Aboitiz Group continues to implement its reforestation program, 

and complement similar activities undertaken by its business 

units. These reforestation projects help rejuvenate nature, thus 

lowering greenhouse gas levels in the atmosphere and slowing 

down climate change. 

ABOITIZ SUSTAINABILITY STEWARDS 

AEV SUSTAINABILITY TEAM:L-R: Marge Gravador, Sebastian 

Lacson (Chief Reputation Officer) and Elena Carnacer” 


RECHARGE 

COMMUNITIES 

RENEWABLE ENERGY 

ABOITIZ 

SUSTAINABILITY 

PILLARS 

REUSE / RECYCLE 

REJUVENATE NATURE 

REDUCE 

Aboitiz Sustainability Pillars 

The Aboitiz Sustainability Programs are guided 

Sustainability Pillars. 

by five 

The first sustainability pillar is Rejuvenate nature. This pillar 

advocates the protection and enhancement of the environment 

and promote awareness of such. The Aboitiz Group is committed 

to uphold the integrity of the natural resources as these will be 

the same resources that the next generation will need to sustain 

businesses. 

The second pillar is Reduce. This refers to activities related to 

reduction of waste generation and consumption of resources. 

Business entities consume resources to generate profit and waste 

is the natural by-product of consumption. Prudent utilization of 

resources will help conserve them and leave enough for the next 

generation. 

Waste is unavoidable. However, waste can be given a second 

life into a reusable item. Recycle / re-use is the third Aboitiz 

Sustainability Pillar. 

Renewable energy is the fourth pillar. Cleanergy is AboitizPower’s 

brand of renewable energy. Renewable energy results to lesser 

carbon dioxide emissions. 

Recharge communities is the fifth pillar. Sustainability is possible 

only if communities also grow and improve as businesses grow. 


11

Corporate Governance 

The Aboitiz Group managed to achieve tremendous growth amid 

challenges in 2010 by adhering to a set of core values that include 

integrity, fairness, prudence, trust and social responsibility. These 

values comprise the Group’s corporate governance policy. 

The Aboitiz Group’s corporate governance policy provides for 

a comprehensive information security management, strong 

regard for shareholders’ benefits and the institutionalization 

of the sustainability principle—which aims to strike a balance 

among economic growth, social development and environmental 

stewardship. 

Compliance with the corporate governance policy starts with the 

Board of Directors. 

BOARD OF DIRECTORS 

The direction of the Group is set by the Board of Directors, which 

ensures compliance with high standards and relevant laws and codes 

of business practices, as well as the adoption of best practices. 

The Board adheres to the Amended Manual on Corporate 

Governance of the Group, which defines its responsibilities and 

corporate governance policies. The manual is based on the Group’s 

mission and vision, which is to provide Filipinos the basic goods and 

services necessary to meet the demands of a growing economy. 

The Board’s primary objectives are: to improve shareholder returns; 

develop responsible, long-term investors; and achieve disciplined 

and sustainable growth. 

The Board of Directors is composed of nine members, three of 

whom are independent. Each member of the Board is schooled 

in the principles of good corporate governance. The current 

Chairman of the Board is a non-executive director. 

DISCLOSURE AND TRANSPARENCY 

As part of the practice of good corporate governance, the Group 

maintains transparency through the publication and distribution 

of the Annual Report, which is also accessible through its website. 

Disclosure and transparency are also signified through company 

information statement, and disclosures to the Philippine Stock 

Exchange and the Securities and Exchange Commission. 

CODE OF ETHICS 

Compliance with good corporate governance is institutionalized 

within the Group upon the establishment of the Code of Ethics 

and Amended Manual on Corporate Governance. This Code is 

observed Group-wide, starting with the Board of Directors. 

Committees within the Board of Directors monitor and ensure 

compliance with these principles. 

The Board Corporate Governance Committee represents the Board 

in discharging its responsibility in relation to the Group’s governance 

principles and guidelines, nomination of persons to the Board, and 

Group senior leadership roles and compensation matters. 

The Board Strategy Committee represents the Board in 

discharging responsibilities related to the Group’s business 

strategy and direction. 

The Board Risk Management Committee represents the Board in 

matters related to risk management. 

The Board Audit Committee represents the Board in its oversight 

responsibility over all audit-related matters of the Company’s 

group companies. It oversees the optimization of effective 

financial management, as well as compliance with regulatory 

reporting requirements for all Business Units. 

All the business dealings of the Group are also anchored on 

the Fair Dealing Policy, as stipulated in the Code of Ethics and 

Business Conduct. The basis of the Fair Dealing Policy serves as the 

foundation of the Group’s objective to outperform competition in 

a fair and honest manner, through superior performance. 

Details regarding the Group’s corporate governance can be 

found in the Annual Report, which can be accessed through 

www.aboitiz.com. 


Our Stakeholders 

STAKEHOLDERS 

WHAT WE COMMIT 

HOW WE ENGAGE 

STAKEHOLDERS / 

INVESTORS 

Enchance shareholder value 

Investor relations 

Analysts’ briefings 

Investor conferences 

One-on-one meetings and 

open line communication with 

analysts 

Stockholders’ meeting and 

annual report 

COMMUNITIES 

Be the neighbor of choice where 

the business operate 

Aboitiz Foundation program 

for education and skills 

development, enterprise 

development, and primary 

health and child care 

Company-specific community 

development programs 

EMPLOYEES 

Develop talents and recognize 

employees and business 

partners 

Financial and non-financial 

rewards 

Life-long learning through the 

Universal Training Program 

Talent Management Program 

ENVIRONMENT 

Address climate change 

issues through mitigation and 

adaptation measures 

Compliance with regulations 

and legistration 

Efficiency in operating 

processes 

Greenhouse gas inventory 

Ecology enhancement 

programs 


13

Rejuvenate 

nature 

“We plant trees because we want our indigenous birds and 

other animal species to thrive and inhabit our forests. We 

care for the next generation. We plant trees because of our 

passion for a better world,” said Aboitiz Equity Ventures 

(AEV) President and Chief Executive Officer Erramon Aboitiz. 

The Aboitiz Group recognizes that businesses will only thrive in 

the next generation if there is a healthy ecosystem that provides 

the resources needed for businesses to operate. In line with the 

principle of sustainability, the Group has, thus, been implementing 

reforestation projects in areas where business units (BUs) operate. 

The Group sets a different target number of trees to be planted 

every year in forest lands, lands of public domain, watersheds and 

coastal areas. 

Moreover, other BUs also have agro-forestry programs that 

involve planting of suitable tree species. Forests serve as habitats 

for plants and animals. They also absorb carbon dioxide in the 

atmosphere, thus bringing down the carbon levels that accelerate 

climate change and global warming. 

So far, the Group has planted 1.2 million trees nationwide. Many 

of these are indigenous to the area, thus bringing back the 

biodiversity in specific ecosystems. Prime movers in reforestation 

are Hedcor Inc., Luzon Hydro and the Visayan Electric Co. (VECO). 

Another one million trees in the next five years will be planted to 

enhance the natural landscape and environment. The goal is to 

plant a total of three million trees nationwide by 2015 under the 

APARK program of the Aboitiz group. 

BUs also run separate agro-forestry programs wherein fruitbearing 

trees—and in Benguet, Arabica coffee—are planted to 

supplement the livelihood of host communities. 

To ensure the survival of the seedlings, the Group and its BUs 

partner with local communities. In the Hedcor, for instance, 

has for partners schools and LGUs, while Cebu has the Philippine 

Business for Social Progress. 

VECO refo park 

To facilitate the planting of 1 million trees in 3 years, the Visayan 

Electric Co. (VECO) embarked on a program that aims to reforest 

540 hectares in Barangays Pung-ol Sibugay and Sudlon II within 

the Central Cebu Protected Landscape (CCPL) and 10 hectares of 

foreshore areas in Barangay Looc, Lapu-Lapu City on Mactan Island. 

The watersheds inside CCPL have been identified as valuable to 

the water supply of Metro Cebu as they serve as catchment areas 

of rainwater, which feed groundwater aquifers on which residents 

of the metropolis are highly dependent on. 

VECO has partnered with the Philippine Business for Social Progress 

(PBSP), which has been conducting reforestation projects in the 

area and promoting awareness among CCPL residents. 

The Aboitiz-led power distribution utility is among the private 

companies that acceded to protect part of the CCPL, under a 

program of the Department of Environment and Natural Resources 

(DENR) that encourages private sector participation in protecting 

the area. 

Since it started its reforestation park project in 2010, VECO has 

reforested 270 hectares within CCPL and five hectares of foreshore 

areas off Mactan Island. Veco exceeded its target of 450,000 trees 

for 2010, having planted 464,490 seedlings in CCPL. In the same 

period, it planted 50,000 mangrove propagules, staying within the 

target for that year. A total of 68 tree and mangrove species have 

been planted, so far. 

To ensure the survival of the seedlings planted and manage 

the reforestation park, VECO entered into a memorandum of 

agreement with PBSP. PBSP involves the community in the area to 

protect and manage the reforestation park. 


Simultaneous 

tree planting 

To protect Mother Earth, a nationwide tree-planting activity was held 

simultaneously last October 16. 

Spearheaded by the Aboitiz Group’s team officers and members, some 2,000 

employees from its 20 companies, as well as volunteers, planted 35,000 trees 

in targeted areas. Some 15,000 of these were planted in the Central Cebu 

Protected Landscape, a protected area. The rest were in Benguet, Isabela, Subic, 

Albay and Tarlac in Luzon, and in Davao del Sur, Maguindanao and Agusan del 

Norte in Mindanao.That day’s activity is expected to arrest about 800 tons of 

carbon dioxide annually, as estimated by the AEV Sustainability Team. 

SIMULTANEOUS TREE PLANTING 2010 

2009 2010 

GROUPWIDE BIODIVERSITY ENHANCEMENT 

Tons CO2 sequestered annually 

Participating 

Business Units 

15,452 

6,686 

Volunteers 

Trees Planted 

1,300 

30,000 

2,000 

35,000 

Number of trees planted 

groupwide 

294,542 

4,144 

680,890 

Hectares Planted 

182,580 

Estimated 

CO2 sequestered 

annually 

18 

681 

21 

795 

2003-2006 2007-2009 2010 

Hedcor watershed management 

Generation of hydroelectric power relies heavily on water resource. 

The quantity and quality of water in turn depend on the health 

of a watershed. Thus, Hedcor and Hedcor Sibulan, AboitizPower’s 

wholly-owned subsidiaries, launched watershed management 

programs for Benguet and Davao to sustain its operations and its 

host communities. 

Throughout the 15 years of Hedcor’s operations, it has 

planted trees in Benguet, while Hedcor Sibulan adopted 1,000 

hectares in the Sibulan watershed and undertook a Watershed 

Management Plan. 

Hedcor and its partner communities planted hundreds of thousands 

of seedlings and fruit-bearing trees as additional income for nearby 

residents on about 1,000 hectares on the ridges of Mt. Apo. Hedcor 

Sibulan also initiated seminars on organic farming, biological pest 

control and solid waste management in the community, as well as 

livelihood trainings for interested residents. 


15

Reduce 

Prudent utilization of resources will help 

conserve them and leave enough for the next 

generation. This is the premise of the the 

Aboitiz Sustainability Pillar of Reduce. 

In 2010, the Aboitiz group embarked on an 

awareness project called Race to Reduce. 

The objective was to get employees from the different business 

unit to be conscious of managing consumption of energy, water 

and paper. Corporate centers vied with each other for the business 

unit to achieve the highest reduction on the three elements. 

The Race to Reduce program won the 2010 Asian CSR Award for 

Environmental Excellence. It also got recognition with and Anvil 

Award of Merit. 

Davao Light and Hedcor has imposed an interdepartmental 

program to reduce usage of electricity (22 o c). Business units 

have replaced incandescent to compact fluorescent bulbs (CFL) 

allowing for better energy consumption management. Davao 

Light also broadcasts energy conservation tips to 270 thousand 

customers energy conservation tips expanding the reach to the 

general public. Efforts partly helped reduce energy consumption 

from 2.7 million kWh to 1.9 million kWh in 2010. APRI advocates 

for switching off of lights during lunch break and regulate aircon 

thermostat. Email invitations, memos, minutes of meetings and 

other announcement instead of reproducing them . APRI Makban 

consumption reduced from 154,929 MWh in 2009 to 127, 157 MWh 

in 2010. APRI Tiwi reduced from 82,868 MWh in 2009 to 65,762 

MWh in 2010. 

Little efforts to manage water consumption include initiatives such 

as Hedcor’s installation of waterless urinals in its new building. The 

corporate center in Cebu has also installed waterless urinals in the 

men’s toilets. Across the group, building administrators closely 

monitor for any leaks in the pipes for immediate repair. 

The Aboitiz Group operates all over the country and it is common for 

many executives, officers and employees to fly off in the different 

regions to attend meetings. Video conferencing technology 

became widely available in the group and this has resulted to 

lesser air travel. There are about 22 video conferencing stations 

in the group distributed in Manila, Cebu and Davao. Subsequently, 

this will reduce the carbon emissions from air travel. 

Aboitiz Race-to-Reduce Challenge 

MONTHLY SUMMARY OF GROUPWIDE 

per person 

consumption 

(kWh) 

per person 

consumption 

(cubic meter) 

MAY 10 

JUN 10 

JUL 10 

AUG 10 

SEPT 10 

OCT 10 

NOV 10 

DEC 10 

234 234 223 449 436 692 466 417 

1.18 1.25 1.51 6.62 6.68 8.50 6.16 5.79 

ANVIL 

AWARDS OF 

MERIT 2011 

ASIAN CSR 

AWARDS 2010 

per person 

0.46 0.54 0.51 0.60 0.34 0.52 0.52 0.32 

consumption 

(reams of bond paper) 

The number of participating business units in Race to Reduce 

grew from 12 to 18 by August 2010 affecting the trend in per 

employee consumption. Other factors that affect this trend are 

the number employees occupying the offices in a given month as 

well as seasonality of business operations. However, the Race To 

Reduce program carried the objective of creating awareness and 

consciousness of responsible resource utilizaiton. As the months 

progressed several business units used their individual Race To 

Reduce results as the basis to implement resource management 

programs in their companies. 

Soy-based dielectric fluid 

for distribution transformers 

VECO has started to implement soy-based 

dielectric fluid for some of its the distribution 

transformers. This oil is biodegradable, nontoxic 

and manufactured from renewable 

sources. AboitizPower is the only electric 

utility provider in the Philippines that uses 

this kind of oil for its transformers. 

A soy-based dielectric fluid filled transformer also has the 

highest fire safety and prolongs the life of transformers and 

regulator equipment. It also has carbon sequestration potential. 

Since the oil is based from soy and soybeans consume CO2 

during its growth cycle. 

The decision to explore using this fluid is in line with the 

AboitizPower’s Cleanergy brand promise of Better Solutions For 

A Better Future. 


Race to Reduce run 

Sustainability is about taking care of the welfare of the next 

generation. To dramatize the importance of managing resource 

consumption and minimizing waste generation, the Aboitiz Group 

held last August 22 the Aboitiz Race to Reduce Challenge: A Race 

for the Next Gen in Cebu. The event also campaigned for healthier 

lifestyles. Funds raised went to underprivileged children from 

various communities supported by the Aboitiz Group. 

During the Aboitiz groupwide simultaneous tree planting activity 

in 2010 trees were planted in the name of the 2,500 runners who 

joined the race. A group of runners also joined employee volunteers 

in the tree planting activity. Aside from Race to Reduce promoting 

awareness of prudent resource consumption of energy, paper and 

water, it also advocated for a healthier lifestyle and a friendlier planet 

while supporting the next generation. This lives up to the triple 

bottom line essence of sustainability – profit, people and planet. 

An hour for 

Earth Hour 

EVERY year, for an hour near the end of March, millions of people around the globe opt to 

re-live a time when there was no electricity, no industries, and no pollution. This voluntary 

switch-off is observed from 8:30 – 9:30 in the evening every third Saturday of March. This 

brief period called Earth Hour aims to express concern for the planet and cease activities 

that put the earth at risk. Using energy triggers emission of greenhouse gases to the 

atmosphere, thus accelerating climate change. planet. 

To support the health of the planet, the Aboitiz Group launched 

simultaneous programs for Earth Hour. All offices of the Group shut 

off lights nationwide from 8:30 to 9:30 p.m. last March 27, 2010. 

Most team members also agreed to do the same in their households. 

Additional activities were organized to raise awareness on Earth Hour. 

In Cebu City, an eco-bazaar featured earth-friendly products at 

The Persimmon Plus in Mabolo, preceded by a walkathon. Several 

lectures on climate change and related topics were also conducted. 

Even electricity distribution utilities aggressively campaigned 

for their customers to participate in switch-off. Cotabato Light 

reported cooperation from 4,600 of its residential customers. 

Davao Light noted a 13-megawatt drop in the load of its franchise 

area during the event. 

For more long-term results, the Visayan Electric Co. (VECO) and 

the Davao Light signed up for the Department of Energy’s (DOE) 

campaign to shift to more energy-efficient lighting systems, like 

compact fluorescent lamps (CFLs) and LEDs (light emitting diodes). 

Under the program, VECO and Davao Light would exchange 

incandescent bulbs that are surrendered by qualified consumers 

for CFLs. It is aimed to bring down energy consumption of 

households, thus freeing up the load in the franchise areas of the 

distribution utilities. 

The program came at an opportune time 

as the Cebu and Mindanao grids suffered 

supply problems. 


17

Pilmico 

energy conservation 

A big chunk of the operating cost of a manufacturing company is 

power. As fuel prices continue to escalate, it has become imperative 

for manufacturers to become energy-efficient. Attaining the goal 

entails cost but in the end, the results are worth it. 

Moreover, Pilmico replaced conventional fluorescent to compact 

fluorescent lamps. Pilmico’s success at cutting down energy 

consumption could be a model for other manufacturing companies. 

Pilmico Foods Corp., a wholly owned company of Aboitiz Equity 

Ventures, made adjustments in its manufacturing systems to 

cut power costs. Cutting energy consumption, becoming energy 

efficient and limiting the use of vehicles are ways to reduce carbon 

and greenhouse gas levels in the atmosphere. 

One of the adjustments made by the company is the revision of 

conveyors-high level interlocking program that uses sensors to 

control the operation of mixers and conveyors. 

Also, Pilmico modified its packing, milling and cleaning systems. 

Its efforts resulted in savings of 66,744 kilowatt-hours (kWh) for 

2008. The following year, additional changes were made on the 

company’s packing system and laboratory, effecting total energy 

savings of 89,731 kWh for 2009 alone. This energy savings was 

carried over to 2010. 

Carbon emissions 

The Aboitiz Equity Ventures carbon emission 

inventory is a means to monitor its emissions 

and eventually find ways that these emissions 

can be reduced or managed. 

In conformity to the GHG Protocol Guidelines, the Group declares 

scopes 1 & 2 (direct and indirect emissions). For Scope 1, it 

computes for emissions from fuel use and for Scope 2, it accounts 

for emissions from purchased electricity. 

The group adheres to operational boundaries in determining 

what to include in the inventory. This accounts for the 

companies where Aboitiz Equity Ventures exert operational 

control. The grid emission factors used to compute emissions 

from energy consumption were adopted from a published 

material and calculated by Mila J. Jude, Chief Technical Officer, 

SEEDLinks Philippines, Inc using the latest methodology of the 

UNFCCC-CDM. 

Emissions in 2010 include those from the power barges in 

Mindanao that AboitizPower started to operate in 2010. These 

made substantial contribution to the Scope 1 & 2 emissions from 

bunker fuel and purchased electricity consumption. The series 

of power outages in Mindanao necessitated the operations 

of back-up power for Davao Light and Power Corp resulting 

to higher emissions from bunker fuel consumption. Aboitiz 

Transport System is already divested from the group’s portfolio 

but for purpose of consistency, emissions from the ships were still 

accounted for in the 2010 inventory. 

Emissions are in Tons CO2 

2010 

SCOPE 1 

Emmisions 

(Fuel use in vehicles 

and fuel use for 

operations (power 

generation and ships) 

SCOPE 2 

PURCHASED ELECTRICITY 

803,535 

30,357 

833,892 

TOTAL EMISSIONS 


Waste is unavoidable. However, waste can 

be given a second life. Recycle / re-use is, 

thus, the third Aboitiz Sustainability Pillar. 

The operating premise is that so-called 

waste is not necessarily so, especially when 

another person finds it useful as livelihood. 

Efforts to re-use and recycle vary across the Aboitiz Group. 

Old communications get recycled into scratch paper, a popular 

practice in the Aboitiz companies. Davao Light gives its used 

batteries to its partners in the Balik Baterya project. Waste oil is 

re-fed into engines in power plants. 

Hedcor sells or donates its recyclable waste to interested team 

members. Their plant operations recycle oil and batteries, and the 

fabrications team recycles the steel, bronze and machining chips. 

Offices recycle papers, plastic containers and cartons. 

The Sustainability Team also initiated a recycled tarp program 

which converts used tarps into reusable pouches that were used 

as the Christmas give-away for City Savings Bank. 

Re-use & 

recycle 

Art that feeds families, 

protects nature 

THE concept of recycling products has given 

birth to a new word—upcycling. 

Upcycling is to the process of creating new 

products that have higher value from 

old items or recycled materials. 

At the Aboitiz Equity Ventures (AEV), its 

Sustainability Team initiated a project 

that not only upcycles old marketing 

collaterals—streamers made of 

tarpaulin—but also provides income 

to communities where Aboitiz 

business units (BUs) operate. 

Dubbed the Aboitiz Recycled Tarp 

(ART) Project, it provides additional 

income to beneficiary families that 

produce pouches and bags from old 

tarpaulin streamers. The BUs then buy and 

use these pouches and bags as corporate tokens. 

First taker is City Savings Bank. Instead of 

purchasing imported items, CitySavings avoided creating 

waste and conveyed to their clients that by patronizing the 

recycled items, CitySavings is a sustainable company. 

Other supportive BUs are AEV, Aboitiz Foundation, Aboitiz 

Transport System, AboitizLand Inc., Visayan Electric Company 

Inc. Metaphil International Inc., Hedcor Inc., Subic EnerZone, 

Pilmico, SN Aboitiz Power and the Ramon Aboitiz 

Foundation Inc. They supplied tarp streamers. 

Outside of the Aboitiz Group, other 

supporters are Go Large, AD 

Venture, RCT Signs, Fashion 

Accessories Manufacturers and 

Exporters, Metrografix, 

Waterfront Cebu City Hotel 

and Casino, Island Souvenirs, 

Ng Khai, Globe Telecom and 

Graphic Star. 

Because the prints on the old 

streamers vary, no tarp pouch is 

like the other. All pouches are are 

also rain-resistant. Meantime, other 

products are being conceptualized. 

The project supports the triple bottomline goal of 

profit, people and planet, the underlying principle 

of the Aboitiz sustainability pillars: Reduce, Re-use / 

Recycle and Recharge Communities. 


19

Renewable Energy 

is the fourth pillar. Cleanergy is AboitizPower’s brand of renewable energy. Energy is harnessed from 

hydro and geothermal sources and will help consumers achieve a sustainable lifestyle and help them 

reduce their carbon footprint. Cleanergy communicates AboitizPower’s vision to offer an energy solution 

that leaves a lighter impact on Earth’s climate and its limited resources, and to promote the usage of 

clean & renewable energy from sources that are sustainable & cleaner than fossil fuels. AboitizPower 

believes that it is every Filipino’s right to live a sustainable life. 

SEEING the urgency to address the climate 

change problem, the Aboitiz Group— 

through AboitizPower—decided to beef 

up its investments in the generation of 

energy from renewable sources. These 

investments tap the country’s geothermal 

and hydropower resources. 

In 2009, AboitizPower launched the Cleanergy brand, which 

is power from geothermal and hydropower plants, to provide 

consumers the chance to choose to follow their conscience and 

do their part in slowing down climate change. 

Having purchased government-owned geothermal and hydro 

power generation assets, AboitizPower has become one of the 

largest private renewable energy producers in the country. 

Its renewable energy portfolio includes two geothermal power 

plants—Tiwi in Albay and the Mak Ban Power Complex in Laguna- 

Batangas border—and numerous hydro generation assets: such as 

the Bakun plant in Ilocos Sur, Magat in Isabela and the Ambuklao 

plants in Benguet. 

For Magat and Ambuklao, AboitizPower joined forces with SN 

Power of Norway. 

The company poured more investments into renewable energy 

and began operation of the Sibulan Power Plant, a Greenfield 

Project that utilizes the Sibulan River to generate hydroelectricity. 

One plant, already operating, generates 26 MW, while a second 

one has the capacity to produce 16.5 MW. 

In 2010, AboitizPower sold 4,356,180 MWh of renewable power. 

As a consequence the release of an estimated 2.2 million tons of 

CO2 was avoided. 


Generating Portfolio 

Plant Capacity (MW) 

Hydro 715 

1,182 

TOTAL 

Attributable Capacity (MW) 

Hydro 383 

Geothermal 467 Geothermal 467 

850 

TOTAL 

“We launched Cleanergy in 2001 and its mission then still holds 

true now, to make Cleanergy available to every Filipino,” said 

AboitizPower President and CEO Erramon I. Aboitiz. “Cleanergy, 

the brand of clean and renewable energy, communicates the 

company’s vision to offer an energy solution that leaves a 

lighter impact on the earth’s climate and its limited resources.” 

The company believes that if consumers are given a choice, they 

would choose Cleanergy and help protect the planet. 

When open access under the Electric Power Industry Reform Act 

(EPIRA) is enabled, AboitizPower will offer Cleanergy as an option 

for customers who believe in the same vision that the company 

has for the future. 

AboitizPower’s investments in renewable energy are in line with 

the Aboitiz Group’s triple bottom line approach, which gives 

importance to protecting the planet and caring for communities 

to sustain its profits. 

To emphasize the importance of renewable energy in its operations, 

Aboitiz identified it as one of the pillars of sustainability, along with 

reduce, re-use/recycle, rejuvenating nature and recharge communities. 

Hydroelectric 

Geothermal 

2008 

2009 


sold in 2010 (MWh) 

MWh sold 

872,769 

3,483,411 

TOTAL 

Avoided Emission 

(tons of CO2) through the renewable energy sold in AP 

MWh sold 

942,960 

3,000,467 

Avoided C02 emissions 

from renewable energy 

sold (in tons CO2) 

434,639 

1,734,739 

4,356,180 2,169,378 

TCO2 

528,058 

1,494,232 

2010 

4,356,180 

2,169,378 


A thousand hours for the planet 

For Earth Day on April 22, 2010, Aboitiz business units poured 

in a total of 1,084 hours, equivalent to 45 days, to care for the 

planet and raise awareness on the need to properly manage its 

fragile resources. 

Aboitiz Group team members and officers celebrated Earth Day 

by conducting clean-up drives in their host communities and 

planting trees in nearby forests and watersheds in different areas 

in the country. 

AboitizPower’s Hedcor in Davao conducted a coastal clean-up, 

while Hedcor Benguet cleaned up a nearby river and collected 30 

sacks of litter. 

AboitizPower Renewables Inc. (APRI), wholly owned subsidiary 

of AboitizPower, led a coastal clean-up in Albay where its 

Tiwi geothermal plant is located. APRI’s team members and 

employees conducted a simultaneous clean-up of an abandoned 

well site in Laguna where the Mak-Ban geothermal power plant 

complex is located. 

Apart from organizing a clean-up, Hedcor Inc. and Hedcor Sibulan 

launched a Solid Waste Management Information Drive in the areas 

where they operate. The activity was aimed at raising awareness 

on proper waste disposal, waste segregation and recycling. 

To show that there is money in waste, Hedcor organized Eco- 

Markets in Baguio and Davao, where recyclable items from 

waste—like plastic containers, bottles and paper—are bought. 

Realizing that a day is not enough to care for the planet, Hedcor 

decided to hold the Eco-Market Day every month. This sustains 

the company’s efforts to raise awareness on the need to protect 

the environment. 

Amid the challenging economic conditions in 2010, few 

companies would have had the strength to sustain its focus on 

the environment. But the Aboitiz Group, driven by the passion for 

a better world, used the ideals of Earth Day to fuel its day-to-day 

activities to care for the planet. 

Employees of SN Aboitiz Power, which operates hydropower 

plants in Isabela, Ifugao and Benguet cleaned up the perimeter of 

its dams. 

Meanwhile, Makati-based team members marched to clean up 

Luneta Park in Manila. 

In Iloilo, representatives from City Savings Bank, 2GO and 

Superferry joined forces to conduct a coastal clean-up. 

In Cebu, Aboitiz Equity Ventures team members cleaned up Sitio 

Lahing-Lahing in Mabolo, Cebu City. 

Visayan Electric Company volunteers, on the other hand, cleanedup 

in a community in Naga, Cebu, while Balamban-based, Cebu 

Industrial Park Developers, Inc. and Metaphil conducted a joint 

coastal clean-up activity. 

12 

Number of business units that 

participated 

1,084 

Total number of man-hours 

volunteered for clean up 

Total number of man-days 

volunteered for clean up 

Earth Day 

clean up 

Man-hour and Man-days reflect the total 

time spent by all volunteers to do the clean-up 

nationwide 


21

Recharge 

Communities 

Recharge communities is the fifth sustainability pillar in Aboitiz. 

Sustainability is possible only if communities also grow and 

improve as businesses grow. 

This pillar supports partnerships with communities that allow 

them to improve on their well-being. The tarp recycling project in 

the group paved the way for a livelihood program for a particular 

community. The Earth Day activity of community clean up 

benefited several barangays throughout the country. 

By engaging communities, the triple bottom line goal of 

sustainability of profit, planet and people is realized. 



23

Recharge Communities: 

Employee Development 

Like a machine, a business organization needs all its parts to be in 

good condition. 

Thus, the Aboitiz Group implements programs meant to ensure 

the overall well-being of its team leaders and members, and 

maintain a working environment that’s safe and promotes respect 

for diversity. 

Total Manpower Complement 

Presently, the Group has a total work force of 29,522. Each receives 

a healthy balance of financial and non-financial rewards based on 

meritorious performance. There are also continuing education 

opportunities like the Universal Training Program. Exemplary 

performers are developed through the Talent Management Program, 

designed to groom the high potentials into corporate leaders. 

2009 year 

2010 year 

TOTAL 

TOTAL 

12,367 

8,776 

26,108 7,729 

29,522 

3,723 7,208 

3,438 

3,714 3,244 

315 

1,626 

178 

526 

274 

1,738 

199 

575 

Holding 

& Investment Power Banking Construction Food Real Estate Transport Others 

Holding 

& Investment Power Banking Construction Food Real Estate Transport Others 

INDUSTRY 

2010 Aboitiz Group 

Employees Breakdown 

DIRECT HIREES 

Regular 

Probationary 

Temporary 

Project 

NON-DIRECT HIREES 

Apprenticeship 

Subcontracted 

11 

7,118 

548 

2,867 

7,125 

11,853 

Meanwhile, for a machine to function efficiently, every 

part has to move in harmony with each other. Coordination 

among all team members and officials is strengthened 

through regular open communication. 

Regular open communication among team members and 

officials, and between management and personnel, allows 

the Group’s corporate values to be shared by everyone 

within the organization. 

Having embraced the sustainability ideal, team members 

in the Group have been instrumental in the success of 

reforestation projects and efforts to reduce resource 

consumption. This is shown by the growing participation of 

team members and officials in various sustainability activities. 

The number of employee-led initiatives in community 

development is another proof that the Aboitiz values are 

now instilled in every team member. 

29,522 

TOTAL 

The biggest proof that the Aboitiz values have been 

successfully instilled in every team member and official in the 

Group, however, is not recorded in any company report; but 

it can be seen in how every employee acts as a responsible 

steward of the earth’s resources and in his or her contribution 

to the development of the community. 


Corporate 

Social 

Responsibility 

The Aboitiz 

Foundation, Inc. 

is the catalyst for corporate social responsibility in the group . For over 20 years, the 

Foundation has proven its success in focusing on education, enterprise development, 

primary health and child care, and other corporate donations. The Foundation is also 

putting in more focus on such environmental concerns as issues of global warming and 

climate change. 

In 2010, the Aboitiz Group CS R initiatives allotted an estimated P 245 million for various 

projects in education, corporate and other donations, primary health and child care, 

enterprise development and environment. Fifty three percent (53%) of the amount 

donated were allocated for education. 

Most of our projects require beneficiary inputs 

as we hope to see our communities grow as 

our business grows. We want our beneficiaries 

to be rightfully called our partners in social 

development. 

Erramon I. Aboitiz, President and CEO of Aboitiz Equity Ventures and Chairman of 

Aboitiz Foundation. 

In 2011, Aboitiz Foundation is set to implement more projects in the community with its 

budget allocation growing from P 106 million in 2010 to P 250 million for 2011. 


25

Corporate 

Social Responsibility 

Aboitiz Group 

CSR Initiatives 

(including Aboitiz Foundation) 

Aboitiz 

Foundation, Inc. 

% to 

group total 

Direct Corporate CSR 

Interventions 

% to 

group total 

Education 

131,622 

67,034 

51% 

64,588 

49% 

Corporate & Other 

Donations 

67,840 

14,408 

21% 

53,432 

79% 

Primary Health 

& Child Care 

21,862 

7,761 

35% 

14,101 

65% 

Enterprise Dev’t 

18,866 

17,068 

90% 

1,798 

10% 

Environment 

4,571 

0% 

4,571 

100% 

TOTAL 

244,761 

106,271 

43% 

138,490 

57% 

Nationwide 

72,110 

52,602 

73% 

62,940 

87% 

PER ISLAND GROUP 

Visayas 

Luzon 

Mindanao 

70,637 

64,889 

31,759 

21,729 

17,405 

9,170 

31% 

27% 

29% 

43,161 

18,035 

14,354 

61% 

28% 

45% 

Metro Manila 

5,365 

5,365 

100% 

0% 

TOTAL 

244,761 

106,271 

43% 

138,490 

57% 


About the artist 

ALMUN REY LOGRONIO 

is one of six young artists from the University of the Philippines Visayas 

Cebu College commissioned by Aboitiz Equity Ventures, Inc. (AEV) to 

make visual representations on the themes of the 2010 Annual Reports 

of AEV, Aboitiz Power Corporation and Aboitiz Foundation, Inc., and the 

2nd Aboitiz Sustainability Report. 

He did five artworks for the company saying, “I used some reference and 

my imagination to come up with my concept for the artwork.” 

Almun Rey was a finalist during the Shell National Art Competition in 2009. 

He studied at the University of the Philippines Visayas–Cebu Campus. 

“The cover and the inside pages of this 2010 Aboitiz Sustainability Report are printed on Splendorgel EW, ultra-fine paper made of 

pure elemental chlorine-free ecological pulp, and is 100% biodegradable and recyclable. The ink used is from the Aniva euro series, 

which is a high-pigmented and mineral oil-free offset ink based on renewable raw materials.”

Enabling Sustainability 

Sustainability Report 2010 

For the online version of this report: 

www.aboitiz.com 

For further information 

on Aboitiz Sustainability, contact: 

Mail to: marge.gravador@aboitiz.com 

Telephone number: (63 32) 411 1839 

Or write to: 

Aboitiz Sustainability 

Aboitiz Corporate Center 

Gov. Manuel A. Cuenco Ave. 

Cebu City, Philippines 6000 

Email: sustainability@aboitiz.com

enabling sustainability - Aboitiz Power

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