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enabling sustainability - Aboitiz Power

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Pilmico<br />

energy conservation<br />

A big chunk of the operating cost of a manufacturing company is<br />

power. As fuel prices continue to escalate, it has become imperative<br />

for manufacturers to become energy-efficient. Attaining the goal<br />

entails cost but in the end, the results are worth it.<br />

Moreover, Pilmico replaced conventional fluorescent to compact<br />

fluorescent lamps. Pilmico’s success at cutting down energy<br />

consumption could be a model for other manufacturing companies.<br />

Pilmico Foods Corp., a wholly owned company of <strong>Aboitiz</strong> Equity<br />

Ventures, made adjustments in its manufacturing systems to<br />

cut power costs. Cutting energy consumption, becoming energy<br />

efficient and limiting the use of vehicles are ways to reduce carbon<br />

and greenhouse gas levels in the atmosphere.<br />

One of the adjustments made by the company is the revision of<br />

conveyors-high level interlocking program that uses sensors to<br />

control the operation of mixers and conveyors.<br />

Also, Pilmico modified its packing, milling and cleaning systems.<br />

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

2008. The following year, additional changes were made on the<br />

company’s packing system and laboratory, effecting total energy<br />

savings of 89,731 kWh for 2009 alone. This energy savings was<br />

carried over to 2010.<br />

Carbon emissions<br />

The <strong>Aboitiz</strong> Equity Ventures carbon emission<br />

inventory is a means to monitor its emissions<br />

and eventually find ways that these emissions<br />

can be reduced or managed.<br />

In conformity to the GHG Protocol Guidelines, the Group declares<br />

scopes 1 & 2 (direct and indirect emissions). For Scope 1, it<br />

computes for emissions from fuel use and for Scope 2, it accounts<br />

for emissions from purchased electricity.<br />

The group adheres to operational boundaries in determining<br />

what to include in the inventory. This accounts for the<br />

companies where <strong>Aboitiz</strong> Equity Ventures exert operational<br />

control. The grid emission factors used to compute emissions<br />

from energy consumption were adopted from a published<br />

material and calculated by Mila J. Jude, Chief Technical Officer,<br />

SEEDLinks Philippines, Inc using the latest methodology of the<br />

UNFCCC-CDM.<br />

Emissions in 2010 include those from the power barges in<br />

Mindanao that <strong>Aboitiz</strong><strong>Power</strong> started to operate in 2010. These<br />

made substantial contribution to the Scope 1 & 2 emissions from<br />

bunker fuel and purchased electricity consumption. The series<br />

of power outages in Mindanao necessitated the operations<br />

of back-up power for Davao Light and <strong>Power</strong> Corp resulting<br />

to higher emissions from bunker fuel consumption. <strong>Aboitiz</strong><br />

Transport System is already divested from the group’s portfolio<br />

but for purpose of consistency, emissions from the ships were still<br />

accounted for in the 2010 inventory.<br />

Emissions are in Tons CO2<br />

2010<br />

SCOPE 1<br />

Emmisions<br />

(Fuel use in vehicles<br />

and fuel use for<br />

operations (power<br />

generation and ships)<br />

SCOPE 2<br />

PURCHASED ELECTRICITY<br />

803,535<br />

30,357<br />

833,892<br />

TOTAL EMISSIONS<br />

18 ENABLING SUSTAINABILITY

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