Business Review - Vol. XXIX No. 4 - June - July 2013 Issue (Preview)

EDITORIAL

ENERGY SMART – In search of Hidden Cash Gerry Constantino Vice President for Operations

Securing the countries energy future is about the smart usage and generation of energy to meet the current needs without harming the environment and compromising future energy supply. If the energy situation is not managed properly, our current source of energy - the “oil wells” - can eventually become “wishing wells”.

Since 2010, ECCP has been helping grow the number of energy smart companies and industries in the Philippines. Apart from the Chamber’s desire to encourage a reduction in the overall energy consumption of the country to ease the pressure on the need to build new power plants, ECCP was also working on making companies and industries aware that there is money in energy efficiency.

Energy Smart is built on the twin pillars of sustainable energy. These are: i) technologies and best practices that improve energy efficiency; and ii) all renewable energy sources, such as hydroelectricity, solar energy, wind power, wave power, geothermal power and tidal power. This means working to bring energy consumption down and promoting the use of renewable or green energy.

The end game is to make companies, industries and the country as a whole globally competitive. Global competitiveness is achieved by bringing down operations cost through energy savings, increasing the cash flow with savings and having the option to use these savings to bring down prices or to increase profit margins. A lower impact on the environment is achieved with reduced energy consumption and the corresponding lower CO2 emission of the operations. This leads to reduced carbon footprint thus making the company more socially and economically responsible as well as enhancing the reputation and global competitiveness of the company.

The global market is moving fast in the direction of demanding corporate and industry supply

chains to follow the sustainable path. The EU, for example, has set up a 20-20-20 target to keep markets and companies under pressure to adopt a sustainable path.

The EU is pushing the economy to achieve a 20% reduction in EU greenhouse gas emissions from 1990 levels; a 20% increase in the share of EU energy consumption produced from renewable resources; and a 20% improvement in the EU’s energy efficiency. The EU is already thinking of raising this to 30%.

Global companies like the Swedish IKEA, the American Walmart, Mark & Spencers, among many other companies, are taking these targets seriously and now demanding their product and service suppliers to contribute to reducing their carbon footprint. They have released sustainability requirements to suppliers to demonstrate to them that they have an energy efficiency program in place, turning wastes to resources, cutting pollution emissions, to name a few.

If Philippine companies will be able to continue to remain a part of the international supply chain, they must put in place a resource efficiency program, particularly energy as well as put more effort in ensuring that they have programs in place to show global buyers that they are promoting sustainability in their operations and contributing to the global reduction of carbon emissions. The real drive for companies to become energy and resource efficient is the fact that their operations will be more profitable and competitive if they do so.

The Energy SMART program has launched several programs to engage new allies in the drive to convince more companies to go energy efficient.

It has tied up with the Philippine Economic Zone Authority (PEZA), the Call Center Association of the Philippines, the German GIZ together with Cebu business organizations to target specific sectors.

BUSINESS REVIEW June-July 2013

3

ECCP and PEZA launched the PEZA Energy Savings Program (PESP) in 2012 to promote energy efficiency among eco-zone locators with the idea to develop low carbon zones and locators. ECCP is organizing road shows throughout the country starting with PEZA managed zones to present to locators the business opportunities in energy efficiency. Basically the message is greening business is good business because through energy efficiency companies will discover the ‘hidden of cash’ (i.e. resources savings) in their facilities and operations.

The same is happening among IT Zones where there is now a growing awareness to push for more energy efficient operations and to be housed in energy efficient buildings. Call centers and BPO firms now prefer being located in energy efficient buildings. If building owners do not respond quickly they will soon find their buildings empty.

ECCP is asking the local government to recognize and provide the appropriate incentives to energy efficient buildings while considering opposite measures to non-energy efficient ones.

Similarly, ECCP is targeting to assist hotels and resorts in Cebu and Bohol to implement energy efficient measures. Through the EKO Smart program, ECCP will encourage hotels and resorts to initiate an energy audit and implement measures that will result in energy savings.

We are accrediting technology, finance and service providers in the Energy Smart program to link them more closely to the business opportunities arising from initiatives in the targeted sectors.

Working on energy savings is the first step towards greater resource efficiency. ECCP is also moving in the direction of water conservation, materials efficiency including eco-materials R&D. We hope to convince more companies that there are plenty of ‘hidden cash” inside their companies.

FEATURE

The inexorable wave: energy efficiency floods the Philippines

By Art Villasanta

Four years of the Philippine Energy Efficiency Forum initiated by the European Chamber of Commerce of the Philippines (ECCP) and its partners have created a wave of realization that can neither be ignored nor halted.

Since 2010, the hard-hitting message that “Energy efficiency is the most important fuel of the future” has been taken to heart by an increasing number of business firms and institutions nationwide. What started in Manila as the 1st PEEF in July 2010 reached out into Cebu in 2011 and to Mindanao this July.

PEEF is the first forum in the Philippines that focuses exclusively on energy efficiency. It supports the Energy Smart Program that aims to encourage the greater application of resources for energy efficiency among business enterprises and to maximize the full potential of energy efficiency for business.

The theme for the 4th PEEF in Manila, “Sustaining the Energy Efficiency Initiatives in the Philippines,” focused on success. Businesses that have benefited from energy efficiency shared their success stories. In doing so, they stoked further interest in energy efficiency as a key to enhancing business competitiveness that also allows them to be more protective of the environment and our planet for the benefit of future generations.

ECCP President Michael Raeuber described the Philippine Energy Efficiency Forum as a major advocacy of ECCP that allows companies to maximize energy efficiency and save on energy costs while caring for the environment.

In the practical realm, Raeuber pointed to the effect energy efficiency has had on the electricity intensive business process outsourcing sector whose 24/7 operations demand energy savings to improve efficiency and profitability.

He noted that IT and BPO firms look for facilities that are energy efficient to cut energy costs so “. . . building owners have to make buildings more energy efficient, or else no business.”

Raeuber asked the government to priorities the pending energy efficiency conservation bill with incentives and preferential treatment for companies

with energy efficiency operations.

Good news for companies planning energy efficiency projects is that the banking sector, an important driver, now has a pool of banks that will allow them access to money for energy efficiency programs.

Energy efficiency partners needed ECCP Vice President and General Manager Martial Beck noted that in advancing the energy efficiency initiative in the Philippines “. . . for this we need partners to drive and carry energy efficiency forward.” He said PEEF brings together stakeholders who are able to do more to promote energy efficiency in the Philippines.

He pointed to data that shows that 50% of the world’s economy and 56% of total generating capacity will be in Asia by 2050. This being the case, Asia cannot rely solely on fossil fuels for its massive future energy demands.

“Energy efficiency is a key solution to meeting energy security challenges in developing Asia,” said Beck.

Angus Miller, Senior Energy Adviser at the U.K. Foreign Commonwealth Office argued that no action can be taken without consequences and that nothing is done in isolation. Applying this to energy efficiency and climate changes means nobody is immune from the consequences of climate change and the impact of emissions.

“The U.K. is working with like-minded countries to future proof our world,” he said.

He said that the Philippines and the U.K. are at a crucial point in defining their energy infrastructure in the next 50 years. For the U.K., energy efficiency will pay an important role in meetings its future energy demands.

He revealed that the U.K.’s shift to a low carbon economy means new industries will grow. The government is making sure business will prepare to meet these new challenges.

BUSINESS REVIEW June-July 2013

13

EVENTS

BUSINESS REVIEW June-July 2013

18

BUSINESS REVIEW June-July 2013

19

SmartCebu

EKO FEST CELEBRATES CEBU AS THE SUSTAINABLE HUB OF THE PHILIPPINES The European Chamber of Commerce of the Philippines (ECCP), as the project coordinator of the SMART Cebu, in collaboration with the Cebu Business Month (CBM) of Cebu Chamber of Commerce and Industry (CCCI), staged the first EKO FEST in the Philippines from June 15 - 21, 2013 celebrating the dawning of Cebu as the hub of sustainable lifestyle in the Philippines.

The one-week event was launched with a grand opening of the exhibition on June 15 at The Northwing of SM City Cebu. The Northwing of SM City Cebu hosted the cocktails and entertainment during the opening with counterpart support from

the CBM Entrepreneurship Committee headed by Nelia V.F. Navarro.

An Eko Conference at Radisson Blu on June 19 served as the culminating activity of the weeklong celebration.

EKO Fest Exhibition Showcased from June 19-21 at The Northwing of SM City Cebu were exemplary products resulting from SMART Cebu, funded by the European Union and the German Federal Ministry of Economic Cooperation (BMZ), and in collaboration with

BUSINESS REVIEW June-July 2013

24

Sequa, ECCP, EFA Germany, ADFIAP, Cebu FAME, CFIF and Cebu GTH. Also displayed were items from Cebu’s growing green entrepreneur community.

“Cebu has been known internationally for its design competence. It’s high time for Cebuanos to display their eco-design capability to the local market,” Henry Schumacher said during the launch attended by key players of the Cebu business community.

Member’s Corner

New Members B&M GLOBAL SERVICES MANILA, INC.

FIRST ADVANTAGE PHILIPPINES INC.

ST. LUKE’S MEDICAL CENTER

14th Fl. Net One Center, 26th St. Cor. 3rd Ave. Crescent Park West, Bonifacio Global City, Taguig Tel. No. : (02)819-4200 Fax. No. : (02) 819-4220 Website : http://na.bakerworld.com Primary Rep. : Mr. Joeri Timp

Executive Director Activities : Billing & Finance/IT/IP

Support/Bus. Dev. &

Marketing/HR Nationality : Dutch

7F Kingston Tower, Acacia Ave., Madrigal Business Park, Alabang, Muntinlupa City Tel. No. : (02)859-2100 Fax. No. : (02) 659-0960 to 64 Website : www.fadv.com Primary Rep. : Mr. Karlo Danta Sr. Business Development

Manager Activities : Background Screening Nationality : American

32nd St., Bonifacio Global City, Taguig Tel. No. : (632)789-7700 Fax. No. : (02) 556-1380 Website : www.stlukesmedicalcenter.com.ph Primary Rep. : Ms. Marilen Tronqued Lagniton

VP-Patient Experience &

Head-Marketing Group Activities : Healthcare Nationality : Filipino

PLASTIC & TOOLS, INC.

PAMALICAN RESORT INC.

TRT GLOBAL LIMITED

100 North Science Ave., Laguna Technopark, Biñan, Laguna Tel. No. : (049)502-6238 Fax. No. : (02) 862-6861 Website : www.plasticntools.com.ph Primary Rep. : Mr. Ronald Q. Reside Executive Vice-President Activities : Precision Engineering

Plastics Nationality : German

A. Soriano Hangar, Andrews Avenue, Pasay City

7/F Net One Center, 26th st. cor. 3rd ave., Crescent Park West Bonifacio Global City, Taguig Tel. No. : (02)998-1771 Fax. No. : (02) 519-6261 Website : www.trt.com Primary Rep. : Mr. Domenic Romanelli Chief Executive Officer Activities : IT Cost Reduction Specialist Nationality : Australian

PITON GLOBAL

FRANCESCA GIGLIO

FU-TAI PHILIPPINES INC.

1903 Antel Global Corporate Center, #3 Doña Julia Vargas Ave. Ortigas Center, Pasig City Tel. No, : (02)687-3381 Fax. No. : (02) 687-3376 Website : www.piton-global.com Primary Rep. : Mr. Ralf Ellspermann CEO Activities : Call Center Services Nationality : Filipino

Via Guglielmo San Felice, 24, Italy Tel. No. : 0039-0814977155 Website : www.studiogiglio.org Primary Rep. : MS. Francesca Giglio Honorary Consul of Italy to

the Philippines Activities : Creating Joint

Ventures between Italy and

the Philippines Nationality : Italian

Unit 402 SEDCCO I Bldg. Rada St., Legaspi Vill., Makati City Tel. No. : (02)843-1679 Fax. No. : (02) 843-1726 Primary Rep. : Mr. Charles H.C. Yang

Chief Executive Officer Activities : General Construction,

Engineering Nationality : Filipino

JRP AD CENTER, INC.

JESPER KRUSELL

4th Flr. Casmer Bldg., 195 Salcedo St. Legaspi Village, Makati City Tel. No. : (02)892-9511 Fax. No. : (02) 892-7657 Website : johnrobertpowers.ph Primary Rep. : Ms. Leigh Monasterio Tugot

Sales & Operations Director Activities : Advertising and Training

Center Nationality : Filipino

JJM Building 5, NAIA, San Dionisio, Paranaque Tel. No. : (02)820-4237 Fax. No. : (02) 829-6295 Website : www.kuehne-nagel.com Primary Rep. : Mr. Jesper Krusell Managing Director Activities : Airfreight/Seafreight/

Contract Logistics Nationality : Swedish

DUALTECH TRAINING CENTER FOUNDATION INC.

Tel. No. : Fax. No. : Website : Primary Rep. : Activities Nationality

: :

(02)854-1160 (02) 854-1168 www.amanpulo.com Mr. Taparahi Ho Tibble General Manager Hotel Singaporean

BUSINESS REVIEW June-July 2013

26

Productivity Drive, Carmelray Industrial Park 1, Canlubang, Calamba City Tel. No. : (02)888-6426 Fax. No. : (02) 888-6420 Website : www.dualtech.org.ph Primary Rep. : Mr. Arnolfo S. Morfe

President & Executive

Director Activities : Training Center Nationality : Filipino