enabling sustainability - Aboitiz Power
enabling sustainability - Aboitiz Power enabling sustainability - Aboitiz Power
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. 4 ENABLING SUSTAINABILITY
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 ABOITIZ SUSTAINABILITY REPORT 2010 5
- Page 1 and 2: Enabling Sustainability enabling su
- Page 3: GRI G3 Level C Disclosures 1.1. STR
- Page 7 and 8: Aboitiz Group 2010 AboitizPower COA
- Page 9 and 10: Business at a Glance Our businesses
- Page 11 and 12: RECHARGE COMMUNITIES RENEWABLE ENER
- Page 13 and 14: Our Stakeholders STAKEHOLDERS WHAT
- Page 15 and 16: Simultaneous tree planting To prote
- Page 17 and 18: Race to Reduce run Sustainability i
- Page 19 and 20: Waste is unavoidable. However, wast
- Page 21 and 22: A thousand hours for the planet For
- Page 23 and 24: ABOITIZ SUSTAINABILITY REPORT 2010
- Page 25 and 26: Corporate Social Responsibility The
- Page 27 and 28: About the artist ALMUN REY LOGRONIO
On the supply side, <strong>Aboitiz</strong><strong>Power</strong> generated 4.4 billion kWh of<br />
energy from our geothermal and hydro power plants, representing<br />
45% of total generation from our power portfolio for 2010. This<br />
allowed electricity users the chance to utilize renewable energy,<br />
which leaves a lighter impact on the planet.<br />
In 2010 we commissioned the 42.5 MW Sibulan run of river<br />
hydroelectric plant in Mindanao. The clean energy generated<br />
from this plant will reduce greenhouse gas emissions by more<br />
than 95,000 TCO2e (tons of carbon dioxide equivalents)<br />
annually by displacing energy that would have come from fossil<br />
fuel-fired power plants. To expand our capacity in renewable<br />
energy, <strong>Aboitiz</strong><strong>Power</strong> is currently developing four run of river<br />
hydroelectric plants with a total capacity of 29 MW. These will<br />
break ground in 2011.<br />
<strong>Aboitiz</strong><strong>Power</strong> is also very active in rehabilitating existing power<br />
plants in order to optimize their generating capacity. The best<br />
example of this effort is the rehabilitation works at the Ambuklao<br />
hydro power station. After being out of commission for many<br />
years, the Ambuklao plant will finally start operating again in the<br />
second quarter of 2011, this time with a capacity of 105 MW, higher<br />
than its original capacity of 75-MW. Rehabilitation work on the<br />
Binga hydro plant and the Tiwi-Makban geothermal facilities are<br />
currently also underway.<br />
On the demand side, approximately 46% of the power sold by<br />
our distribution utilities in 2010 came from renewable sources.<br />
Our power marketing team also made Cleanergy available to 34<br />
distribution and institutional clients nationwide allowing them<br />
to make a responsible choice of buying renewable energy. It is<br />
our vision to make Cleanergy, <strong>Aboitiz</strong><strong>Power</strong>’s brand of clean and<br />
renewable energy, available to all Filipinos once the Green Energy<br />
Option as envisioned by EPIRA is implemented.<br />
We are grateful to all of our stakeholders, all of whom we consider<br />
our partners, for their valuable support to our <strong>sustainability</strong> efforts.<br />
We will explore more initiatives, hoping to inspire others to be part<br />
of our advocacy, and do their share for a healthier environment.<br />
We will continue to build on those partnerships for the benefit of<br />
our future generations and our planet Earth.<br />
The <strong>Aboitiz</strong> Way is about promoting good growth that is<br />
economically, socially and environmentally sustainable.<br />
Please join us.<br />
Our main contribution to the health of the<br />
planet has to be the promotion of competitive<br />
renewable energy in the country.<br />
Jon Ramon <strong>Aboitiz</strong><br />
Chairman of the Board<br />
Erramon I. <strong>Aboitiz</strong><br />
President & CEO<br />
ABOITIZ SUSTAINABILITY REPORT 2010<br />
5
Change language