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Strategic Analysis and Research by the

cenSEI

CENTER FOR STRATEGY, ENTERPRISE & INTELLIGENCE

T H E

Tiangco: House leaders guilty of graft, coercion ~ March 13 blog entry headline summarizing Navotas Representative Tobias Tiangco’s testimony before the Senate impeachment court hearing the impeachment complaint against Chief Justice Renato Corona

Report

Volume 2 - Number 11 • March 19-25, 2012

NATION

Enrile, Estrada, Pangilinan, Sotto, Lacson, Angara: Tiangco testimony irrelevant ~ March 14 online newspaper headline indicating what 6 senator-judges think of Rep. Tobias Tiangco’s charge of coercion in the House of Representatives in the filing of the impeachment complaint

4 Decongesting the Road More Traveled

EDSA could be getting a parallel road, but the jury’s still out as to whether that will help • Metro Manila’s train system: Three lines up, four to go: An ambitious work in progress • Planning for proximity rather than mobility : Cities can chart their progress and plot their future • A tale of two highways: A possible solution to please two competitors

13 Child Abuse in the Philippines: A Campaign Far from Won Even if reported cases are down, there’s still plenty of reason for concern • Are abusive priests abetted by social stigma: Archbishop Tagle of Manila says victims might not be coming out because silence is a way to preserve one’s honor • Protecting children from offenders: Cautionary information about appropriate and inappropriate behavior • How to tell if a child is abused: The Bantay Bata checklist

WORLD

20 Asia’s Battle Against Global Warming

BUSINESS

32 Making Your Business Sustainable

With archipelagic nations and island states, South and Southeast Asia find themselves at the forefront of climate-change risk • The Philippines: A plan and a budget for climate change: Where climate-change mitigation and adaptation money will go • A president, a tycoon, a pop star and other global environment heroes: The United Nations honors its Champions of the Earth

Profits and social responsibility are no longer mutually exclusive goals • Sustainability reigns at Ayala Group’s Manila Water: The water-utility concessionaire cuts its losses while delivering clean water to more people • Greenwashing: For some firms, it’s still just profit and PR: Laundering one’s reputation by invoking the environment

TECHNOLOGY

40 Renewable Energy Goes Mainstream

With companies and consumers embracing the imperative to care for the environment and stop climate change, the global market for renewable energy devices goes far beyond poor villages off the power grid

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POINT & CLICK You can access online research via the Internet by clicking phrases in blue

TECHNOLOGY

Center for Strategy, Enterprise & Intelligence provides expertise in strategy and management, enterprise development, intelligence, Internet and media. For subscriptions, research, and advisory services, please e-mail report@censeisolutions.com or call/fax +63-2-5311182. Links to online material on public websites are current as of the week prior to the publication date, but might be removed without warning. Publishers of linked content should e-mail us or contact us by fax if they do not wish their websites to be linked to our material in the future.


The Challenge of Sustainability Touches Everything In our constant endeavor to analyze for our readers the urgent developments and concerns of every week, every installment of The CenSEI Report almost always features a disparate variety of subject matter, with no two articles touching on the same broad topic. However, this week we cover, in three or even four of our stories, the various facets of one overriding theme of our time: sustainability. In the World section we assess the devastating potential long-term impact of climate change on Southeast Asia, one of the most severely affected regions, if humankind’s unsustainable emissions of greenhouse gases do not abate. The report also details what high-risk countries like the Philippines must do to reduce future damage to their economies, farms and forests, health and calamity sectors, which would constitute especially debilitating and deathly blows to the poor. Aside from adapting to global warming, our civilization must also mitigate our collective effect on the temperature of the planet by cutting emissions. In this global campaign, it is crucial to devise gear that can power the world with smaller and smaller carbon footprints. That’s what our Technology report on renewable energy devices offers those who wish to thin the gas blanketing the earth without lights going out and transport and industry grinding to a halt. Developing, disseminating and deploying cutting-edge gear to cut emissions invariably involve the sprawling industries that supply, sustain and service our world. Hence, the Business article on making sustainability a core corporate goal is timely and apropos to the goal of living and working in consonance with nature. And to make that new parameter spread and last, firms practicing it must still make a profit. Our sustainable business study ponders how. At first read, the two Nation articles on Metro Manila traffic and child abuse in the country might have little relevance to our sustainability theme, but think again. Every climate-change expert worth his or her PhD knows that unraveling gridlock on the streets is one very effective way to reduce emissions from their No. 1 source on the planet: the internal-combustion engine. And if we ever wonder for whom we are supposed to make our ways of living and making a living sustainable, we should look no further than the nurseries and the preschools. Degrading our children’s future through unsustainable practices is at least as bad as violating their dignity and rights in the here and now. It may even be worse, for despoiling the planet wrecks the lives not only of one generation, but all others that follow. It’s the worst form of child abuse. The CenSEI Report deeply apologizes for the late distribution of this issue, due to editorial and technical problems.


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Decongesting the Road More Traveled Will an ambitious parallel road for EDSA help ease traffic flow in Metro Manila? By Victoria Fritz

STRATEGY POINTS Metro Manila Development Authority chairman Francis Tolentino has proposed the building of a “skybridge” from Quezon City to Makati to ease congestion along Epifanio de los Santos Avenue, Metro Manila’s main highway. In the larger scheme of things, addressing traffic congestion in major urban centers should include developing public transport infrastructure, rather than just building more roads to accommodate more cars

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In January, as reported in a number of major media outlets, the Metro Manila Development Authority (MMDA) announced an ambitious plan to construct a skybridge parallel to Epifanio de los Santos Avenue (EDSA), to serve as an alternative for vehicles traveling from Quezon City to Makati. The elevated six-lane highway will begin at E. Rodriguez Sr. Avenue in Quezon City, pass over Pasig River tributaries on its way through Sta. Mesa and Mandaluyong along its route, and end at J.P. Rizal St. in Makati. The project will cost P10 billion, and aims to reduce traffic on EDSA by as much as 40%. According to MMDA chairman Francis Tolentino, with fewer vehicles on EDSA, cruising time is expected to speed up by 20

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Decongesting the road more traveled

PROPOSED SKYBRIDGE FROM QUEZON CITY TO MAKATI Quezon City

San Juan

Makati City

EDSA

Mandaluyong City

The MMDA expects its proposed skybridge running parallel to EDSA will reduce traffic on Metro Manila’s main thoroughfare by as much as 40%

to 29 kilometers per hour, and travel time would be cut to 15 to 18 minutes from the current one hour. The proposed skybridge will be built on top of estuaries, particularly along San Juan River, which will effectively avoid right-of-way problems in the construction phase. It will have on and off ramps on Aurora Boulevard, P. Sanchez Street, and New Panaderos. The design will be submitted to the National Economic and Development Authority and the Department of Public Works and Highways for approval. If approved, the project will be built under a private-public partnership arrangement and will take an estimated two years to finish.

The

To be sure, Metro Manila traffic is a perennial problem that needs to be addressed. A Dec. 2010 BusinessWorld commentary reported that in 2007, the Dept. of Transportation and Communications estimated direct and indirect losses caused by Metro Manila traffic at P140 billion a year. But is another road the best solution in the long run? Here, The CenSEI Report will examine various approaches to the ongoing problem of urban traffic. Working with what we have. In April 2011, Antonio B. Villegas, transportation consultant, offered The Manila Times his own set of solutions for easing Metro Manila’s traffic, including some quick ones: flex-time schedules for schools and offices,

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and a stricter implementation of the colorcoding scheme and truck ban. In the long run, nonetheless, he conceded that effective and well-engineered infrastructure is still the key, along with the need to convert to a train-based transportation system.

The operation and expansion of MRT3, which the Aquino administration wants to bid out under its public-private partnership program (and which has drawn considerable interest), however, has come into question.

In a 2002 report in The Philippine Star, he offered a set of solutions that included phasing out old vehicles, tightening up on the issuance of driver’s licenses, and strict enforcement of the truck ban, all to go along with the MMDA’s campaign against sidewalk vendors at the time.

Metro Pacific Investments Corp., led by businessman Manuel V. Pangilinan, claims that it has the exclusive right to operate, maintain and expand the railway system, which runs along EDSA, as it controls Metro Rail Transit Corp. (MRTC), the consortium that built MRT3.

Beefing up public transport. In Metro Manila, the public transport system that complements EDSA is the Metro Rail Transit 3 (MRT3). It runs a length of 16.8 kilometers and has 13 stations, and ferries 400,000 people daily. This is in comparison to the 2 million commuters on board 350,000 vehicles going up and down EDSA daily. There is a project to extend the capacity of MRT3. This includes the purchase of additional rolling stock, which would mean more cars per train. President Aquino has already authorized the release of ₧6.3B for MRT3 and LRT (Light Rail Transit), the latter serving other parts of Metro Manila. Of the total amount, P4.5B will be for 26 additional coaches for MRT3, the balance for the two lines that comprise the LRT system.

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The Department of Transportation and Communications claims otherwise, saying 80% of MRTC’s economic interests is held by the government-owned Land Bank of the Philippines and Development Bank of the Philippines, apart from the government’s direct 22.3%-stake in the consortium. At any rate, MPIC has its own plan to add more cars to each train in order to increase MRT3’s capacity to 700,000 people daily. Reducing the number of vehicles. Hadji Jalotjot, a graduate student in sustainability studies at the University of Tokyo, cites Land Transportation Office figures to say that vehicle registration increased by about 6% annually in the last five years of the previous decade, and that the number of vehicles in the Philippines stood at 6.2 million at the end of 2009. (Based on a 6% annual rate of increase, those 6.2 million vehicles in 2009 would just about double by 2021.) Representative Rufus Rodriguez of Misamis Oriental’s 2nd District is pushing for a bill whose aim is to reduce the vehicles in the

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Decongesting the road more traveled

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Metro Manila’s train system Metro Manila has a comprehensive train system that is still to be completed, as follows:

The iamge above shows the operating train lines: the Yellow Line (Line 1), the Purple Line (Line 2), the Blue Line (MRT 3 or the EDSA Line), and the Orange Line (the PNR train). The half-shaded portions are the planned extensions, inclusing the Green Line (North Line Phase 1). The gray portion refers to the MRT 7 , which has undergone a major change from its original route. With the present plan, will now service commuters between Bulacan and Quezon City, and will have 14 train stations from San Jose del Monte in Bulacan to the corner of North Avenue and Epifanio de los Santos Avenue (Edsa) in Quezon City. It will be linked with the MRT-3 train line and the Light Rail Transit (LRT) line 1 via a common station in North Avenue, and is projected to be operational by 2014. The Yellow Line (Line 1) is undergoing the extension as shown in the map. The Line 2 extension has yet to commence. There are no new reports on The Yellow Line South Extension at the moment.

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country. House Bill • Transport planning was 4950 seeks to provide ineffective because it did not higher registration involve stakeholders; Land-use rates for a person’s second and subsequent planning is a vital • Implementation was weak, vehicles. Under the i.e., when implementation element of the bill, the second vehicle occurred, the results were not will be charged ₧3,000, ADB’s Sustainable assessed adequately in terms ₧5,000 for the third of success or failure, Urban Transport vehicle and ₧7,000 for a fourth and each • Technical studies were used paradigm subsequent vehicle. to justify political decisions Rodriguez is looking instead of being used to for ways to help lower advance users’ interests. the number of vehicles in the country, with Based on those observations, the goal of reducing air the ADB came up with a pollution. The indirect result more holistic and sustainable approach would be traffic decongestion. The bill to solving traffic gridlock that calls for is co-authored by Abante Mindanao nothing less than a paradigm shift. The party-list Representative Maximo B. Sustainable Urban Transport paradigm Rodriguez, and was first presented in has five core elements: September 2011. 1. Transport Policy is created collectively Thinking about sustainable urban by all involved parties, including the endtransport as a whole. In a 2009 study, users, who can articulate their actual needs. “Changing Course: A New Paradigm for Sustainable Urban Transport,” the 2. Land-use planning is a vital element Asian Development Bank assessed urban of the solution, to facilitate the provision of transport in five representative Asian cities: public transport and reduce the need Colombo (Sri Lanka); Dhaka (Bangladesh); for travel. Kathmandu (Nepal); Changzhou (People’s Republic of China), and; Harbin (People’s 3. Transport demand is managed vis-à-vis Republic of China). The study reported the supply. Focus is placed on traffic reduction following observations: and the greater use of public transport. “No longer is road traffic capacity automatically • There was no clear city vision; expanded in response to demand forecasts.” • Transport policies were simplistic, focused on increasing volume of vehicles without studying movement of people, thus resulting in large infrastructure projects that caused even more congestion;

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4. Transport plans are just part of a wider city vision. 5. Policy efficacy is demonstrated by a stakeholder community.

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Decongesting the road more traveled

In the table below, the old way of doing things is compared with the new paradigm. In the section on “Content,” for example, the Old Paradigm lists “Building projects, mainly roads within the city, while under the New Paradigm, “... megaprojects are pursued only after careful study.”

Time for a national transport plan? The Australian Agency for International Development (AusAID) recently commissioned a National Transport Policy and Planning Study for the Philippines. To implement its recommendations, the Philippines-

ADB’S NEW PARADIGM FOR SUSTAINABLE URBAN TRANSPORT Aspect of transport polocies/plans Goal

Basis

Preparation for an uncertin future

Content

Financing

Stakeholder involvement Implementation

Governance and institutions

Old paradigm

New paradigm

To provide mobility; road capacity is increased to meet orecasted demand; trafficcentered approach Deterministic model forecasts by technical experts; outputs provide the answers; a detailed plan with good rates of return The future is largely ignored; trivial sensitivity testing

To provide accesibility ; demand is managed to road capacity and public transport is central; a people-centered approach Plans are based on sustainable policies and strategic planning; robustness, technical soundness, and stakeholder support are criteria for policy adoptation Management/integration of the existing transport system; focus on public transport; new roads shape the city’s expansion and secondary roads catalyze infill development; megaprojects are pursued only after careful study Affordability is an input and finacial and technical planning proceed together; focus on implementability and operations Strong stakeholder involvement and influence; echnical inputs are fit for purpose; strong concensus is a requirement Implementation processes are put in place and impediments are addresses early

Building projects, mainly roads within the city, frequent megaprojects Affordability is assumed and only scant attention is paid to implementability Plans devised by technical experts using transport models; little stakeholder influence Seen as a problem to sort out later

The planning process is technocratic and informs hard political decisions; improved governance is a prerequisite; the focus is on creating an enabling environment The planning process is often The planning process is technocratic and politicized; often, technical informs hard political decisions; improved analyses ptovide justification for governance is a prerequisite; the focus is political decisions on creating an enabling environment

The ADB’s new paradigm for sustainable urban transport, viewed through various aspects of transportation planning and development Source: “Changing Course: A New Paradigm for Sustainable Urban Transport,” Asian Development Bank, p. 6.

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Australia Partnership for Economic Governance Reforms (PEGR) designed RA008-02 (Formulating a National Transport Plan), which was published in 2010.

In the report, there is a clear emphasis to prioritize public transport infrastructure development. In case of excessive road congestion, the appropriate governing body is advised to restrict traffic.

Planning for proximity rather than mobility The afore-mentioned 2009 Asian Development Bank study on sustainable urban transport cites the diagram below, developed by Paul Barter, an urban transport specialist and professor at the University of Singapore. The diagram shows a typology of the different paths of transport development that Asian cities have followed in the past (Manila is classified as a “traffic-saturated bus city.”) Barter’s model makes it possible for cities to assess their current position and determine their direction, in order to ascertain whether their policies are sustainable and to adjust them as needed. According to Barter, urban transport is sustainable when its focus shifts from providing mobility to providing accessibility to goods, services and activities. The purpose of transport planning should be planning for proximity, or increasing access, rather than meeting demand for greater mobility.

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POTENTIAL TRANSPORT DEVELOPMENT PATHS FOR DEVELOPING CITIES Public modes dominate

Private modes dominate

Low mobility cities

Walking cities Non-motorized transport (Shanghai in 1980s)

Motorcycle cities (Ha Noi) Continued motorization

Trafficsaturated

Motorcycle cities (Ho Chi Minh)

Bus/paratransit cities (Seoul, Manila in 1970s)

Rapid motorization Low road + public transport investment

Slow motorization moderate road-building

Traffic-saturated bus cities (Bangkok, Jakarta, Manila)

Mass transit investment Transit-oriented development

Restrained private cars Continued invest in alternatives motorization Unrestrained motorization

Car cities (Houston)

Entrenched traffic saturation

Transit cities (Hong Kong, Seoul, Singapore)

Spectrum of city types between car and transit cities

High mobility cities

The model shows intended or potential transport development paths for developing cities

Cities can chart their development paths along private-public dominance on one axis, car-transit dominance on another axis

Source: “Changing Course: A New Paradigm for Sustainable Urban Transport,” Asian Development Bank, p. 6.

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Decongesting the road more traveled

In its Policy Formation, under the section Urban Transport, the report recommended the following guidelines: 1. Public transportation in urban areas provided by the government and/or under PSP arrangements should be given priority over private transportation to ensure accessibility, comfort, convenience, reliability, safety, security and affordability to the majority of urban travelers. The DOTC should define a hierarchy of urban public-transport services in assigning appropriate modes to various routes or areas of operation. 2. With proper criteria for evaluating and selecting transport projects, high-capacity, public-transport systems should be the preferred mode in high-passengerdensity corridors in order to maximize the use of travel space by servicing the most number of passengers with the least delay possible. 3. Interconnectivity among publictransport modes should be of prime consideration for the development of the

The

urban public-transport system, through the provision of modal interchange areas where transfer of passengers from one mode to another will be safe and convenient, and not disrupt traffic flow on the surrounding roads. 4. In addressing problems of traffic congestion on urban roads, priority shall be given to low-cost traffic engineering and management measures over that of high-cost infrastructure facilities. However, road infrastructure projects shall be considered where there is a clear need for an additional infrastructure facility to establish a road hierarchical system and/or to address road network deficiencies such as major traffic bottlenecks and missing links. 5. In large urban areas where the transport capacity expansion strategy is no longer sufficient to address widening supply and demand gap, the DOTC, the regulatory body, or the local government unit (LGU) concerned, as may be appropriate under existing laws, should have the authority to apply transport demand-management measures, such as traffic restrictions.

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Decongesting the road more traveled

6. Any proposal to restrict the movements of trucks in urban areas to ease traffic and reduce traffic accidents should also take into account its economic impacts.

7. The provision of non-motorized transport, such as pedestrian facilities and bicycle ways, where justified and physically/ operationally viable, shall be promoted and such pedestrian facilities, bicycle A tale of two highways ways and nonA revived highway proposal that serves as the latest front for a tug of war between motorized Metro Pacific and San Miguel Corporation might also help decongest EDSA. transport should be considered As mentioned earlier, the Metro Pacific group, which has been trying to prevent the integral parts government from bidding out the operations and maintenance of the MRT3 line, on of the transport the grounds that it controls the consortium that built the MRT3, now wants to develop system. a road to connect the North Luzon Expressway (NLEX) with the South Luzon Expressway (SLEX), which San Miguel-backed Citra Metro Manila Tollways Corp., the NLEX developer and operator, says was part of its original contract in 1995.

8. LGUs shall adopt an integrated The Metro Pacific proposal consists of a four-lane, 22-kilometer connector road with three exits, which appears to be primarily for north-south traffic that doesn’t need to approach to land go through Metro Manila. The Citra proposal is a six-lane, 14-kilometer toll road with use and urban seven exits in various locations in Manila and Quezon City, and has decongesting transport plnning EDSA in mind. in order to have more effective As of early March, the two groups seemed amenable to a suggestion of DOTC management of Secretary Manuel A. Roxas II that the government might have both roads built. growth in urban areas and to ensure that the capacity In any case, truck bans should preferably of transport facilities and services can not be imposed for national roads. The accommodate the demand. Accordingly, DOTC and DILG, in consultation with the LGUs shall require traffic impact stakeholders, should formulate guidelines assessments for new and significant land in the planning and design of truck bans. use developments in urban areas.

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Child Abuse in the Philippines: On the Wane or Just Laying Low? A recent drop in reported child-abuse cases might not be cause for celebration just yet By Joanne Angela B. Marzan

STRATEGY POINTS The Department of Social Welfare and Development has reported a decrease in the number of child abuse cases served: from 6,524 in 2009 to only 4,749 in 2010,which could either mean a decline in actual child abuse cases or in the capacity of the DSWD to serve abused children

In September 2010, a newborn baby boy was abandoned by his own mother in the trash bin of the lavatory of a Gulf Air plane. In August 2011, five-year old Kate from Mandaue City, Cebu, died due to “sepsis and post-traumatic stress disorder secondary to child abuse.” The alleged perpetrator is her father’s live-in partner, Abigael.

Studies revealed that victims of child sexual abuse are most likely not inclined to ever tell anyone of the abuse for fear of their abuser

More recently, in March, economist, professor and columnist Solita CollasMonsod admitted to being a victim of

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of Social Welfare and Development (DSWD) were any indication, then it would appear that the country is gaining ground in its fight against child abuse.

And the list of atrocities against children goes on and on.

In 2010, the DSWD reported that the a big drop in the number of child abuse cases it addressed, as shown in the table above from National Statistics Coordinating Board (NSCB) Secretary General Romulo A. Virola’s online column, “Statistically Speaking.” From a total of 6,524 in 2009, the numbers in 2010 were down to 4,749, or about 27% lower.

Some child abuse cases grab the headlines with their gruesomeness and cruelty, while others fester as they remain hidden in the hearts of their victims. Number of reported child-abuse cases down. If data coming from the Department

CHILD ABUSE CASES HANDLED BY DSWD, 2009-2010 2009 Both Sexes Total Philippines

2010

Male

Female

Both Sexes

Male

Female

No.

%

No.

%

No.

%

No.

%

No.

%

No.

%

6,524

100.00

2,208

33.8

4,316

66.2

4,749

100.0

1,611

33.9

3,138

66.1

Abandoned

1,091

16.7

593

54.4

498

45.6

1,433

30.2

775

54.1

658

45.9

Neglected

2,412

37.0

1,197

49.6

1,215

50.4

1,079

22.7

588

54.5

491

45.5

Sexually-Abused

29.6

27.3

Rape

1,097

56.9

26

2.4

1,071

97.6

707

54.6

67

9.5

640

90.5

Incest

635

32.9

0

-

635

100.0

485

37.5

5

1.0

480

99.0

Acts of Lascviousness

197

10.2

5

2.5

192

97.5

103

8.0

7

6.8

96

93.2

1,929

100.0

31

1.6

1,898

98.4

1,295

100.0

79

6.1

1,216

93.9

Victims of Prostitution

63

48.5

0

-

63

100.0

66

52.0

0

-

66

100.0

Victims of Pedophilia

20

15.4

1

5.0

19

95.0

13

10.2

6

46.2

7

53.8

Victims of Pornography

3

2.3

0

-

3

100.0

8

6.3

1

12.5

7

87.5

Victims of Cyber Pornography

44

33.8

22

50.0

22

50.0

40

31.5

0

-

40

100.0

Sub-total Sexually-Exploited

Sub-total

2.0

2.7

130

100.0

23

17.7

107

82.3

127

100.0

7

5.5

120

94.5

Physically Abused/ Maltreated

587

9.0

291

49.6

296

50.4

304

6.4

104

34.2

200

65.8

Victims of Child Labor

83

1.3

28

33.7

55

66.3

69

1.5

14

20.3

55

79.7

Victims of Illegal Recruitment

7

0.1

0

-

7

100.0

2

0.0

0

-

2

100.0

221

3.4

23

10.4

198

89.6

390

8.2

22

5.6

368

94.4

Involved

7

29.2

2

28.6

5

71.4

3

10.0

1

33.3

2

66.7

Affected

17

70.8

6

35.3

11

64.7

7

90.0

3

11.1

24

88.9

24

100.0

8

33.3

16

66.7

30

100.0

4

13.3

26

86.7

40

0.6

14

35.0

26

65.0

20

0.4

18

90.0

2

10.0

Victims of Child Trafficking Victims of Armed Conflict

Sub-total Others

0.4

0.6

Does a 27% drop in child-abuse cases handled by the Dept. of Social Welfare and Development indicate real progress in addressing the problem, or a reduction in the department’s capacity to handle such cases? Source: “Abused Children!” Oct. 11, 2011 “Statistically Speaking” column of Dr. Romulo A. Virola, National Statistical Coordination Board

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Child abuse in the Philippines: On the wane or just Laying low?

Child-abuse cases could be higher than reported. While the DSWD data shows a decrease in the number of child abuse cases in the country, Virola is unsure “if this reflects a reduction in actual child abuse cases, or a reduction in the capacity of the DSWD to serve abused children.” The July 2009 discussion paper from the Philippine Institute for Development Studies (PIDS), “Global Study on Child Poverty and Disparities: The Case of the Philippines,” believes that the actual

number of child cases could be higher than what DSWD reports (p.168). “There should be (a) caveat in analyzing available data as there may be cases which remained unreported, particularly in remote and farflung areas,” the paper explains. The PIDS paper calls on the Council for the Welfare of the Child to “consolidate all data through its macro monitoring system to capture a complete picture of child abuse in the country.”

Sexual abuse of children by priests abetted by culture of shame? In a February 11 Associated Press (AP) report, published in the Philippine Daily Inquirer, Archbishop Luis Antonio Tagle of Manila said that there is a need to address incidents of priests sexually abusing children. Speaking during a four-day conference in Rome, Tagle revealed that while some sexually abused children in the Philippines have chosen to come forward, most victims still preferred to keep silent. “The relative silence with which the victims and Asian Catholics face the scandal is partly due to the culture of ‘shame’ that holds dearly one’s humanity, honor and dignity,” Tagle explained. “For Asian cultures, a person’s shame tarnishes one’s family, clan and community. Silence could be a way of preserving what is left of one’s honor,” Tagle added. Tagle also spoke of the “touching culture” of the Filipinos. “We touch children a lot. But they cannot clearly distinguish an affectionate touch from a malicious one. They are vulnerable to manipulation through touch,” he said. The conference was attended by priests and bishops from 110 dioceses and 30 religious orders worldwide with the objective of creating guidelines on how to care for victims investigate abuse allegations and keep pedophiles out of the priesthood.

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According to the June 2003 paper “Improving the Referral System for Child Abuse Cases in the Philippines,” by Arlyn G. Verba and Faye A.G. Balanon, “recent researches reveal that physical abuse may be underreported because only extreme forms of abuse are thought to necessitate intervention from authorities (Yacat & Ong 2000).” DSWD Undersecretary Celia Capadocia Yangco, in her paper, “A Comprehensive Approach to Prevention of Child Maltreatment in the Philippines:

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16 Building Partnerships among Agencies, Organizations and the Community,” believes that an “efficient and effective system of identification, detection, reporting and processing/managing among the key members of society (government, non-government, business, church, media, the community) on the incidence of child abuse/maltreatment is crucial to reducing or eliminating this problem.” (p.109) Hidden abuse. The paper, “Child Abuse in the Philippines: An Integrated Literature Review and Annotated Bibliography,” by Elizabeth Protacio-Marcelino, Ph.D., Marie Teresa C. dela Cruz, Faye A.G. Balanon, Agnes Zenaida V. Camacho and Jay Yacat, poses another caveat to the DSWD report.

“There is abuse that is hidden, and thus escapes the current monitoring and intervention work of government and nongovernment organizations. These are the cases of children in bonded labor and child domestic workers,” the paper said. The paper cited as examples the other forms of abuse that “remain hidden under the protective mantle of social institutions where they occur” like the school or church. The sexually abused child keeps a secret. According to the 2005 paper, Disclosure of Child Sexual Abuse: What Does the Research Tell Us About the Ways Children Tell, by Kamala London and Maggie Bruck, Stephen J. Ceci and Daniel

Protecting children from possible sexual abuse The National Child Traumatic Stress Network has identified tips to help protect children from sexual abuse. 1.Teach children accurate names of private body parts. 2.Avoid focusing exclusively on “stranger danger.” Keep in mind that most children are abused by someone they know and trust. 3.Teach children about body safety and the difference between “okay” and “not okay” touches. 4.Let children know that they have the right to make decisions about their bodies. Empower them to say no when they do not want to be touched, even in non-sexual ways (e.g., politely refusing hugs) and to say no to touching others. 5.Make sure children know that adults and older children never need help with their private body parts (e.g., bathing or going to the bathroom). 6.Teach children to take care of their own private parts (i.e., bathing, wiping after bathroom use) so they don’t have to rely on adults or older children for help. 7.Educate children about the difference between good secrets (like surprise parties—which are okay because they are not kept secret for long) and bad secrets (those that the child is supposed to keep secret forever, which are not okay). 8.Trust your instincts! If you feel uneasy about leaving a child with someone, don’t do it. If you’re concerned about possible sexual abuse, ask questions.

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W. Shuman, psychiatrist Roland Summit developed in 1983 the term “child sexual abuse accommodation syndrome (CSAAS),” to describe how sexually abused children disclose abuse (p.195). The paper added that, according to Summit, CSAAS includes five components: (a) secrecy; (b) helplessness; (c) entrapment and accommodation; (d) delayed, conflicted, and unconvincing disclosures; and (e) retraction of disclosure. “Children who have been sexually abused may respond with self-blame and selfdoubt. They may fear the perpetrator and the possible consequences of disclosure. Hence, in order to survive sexual abuse by a trusted family member, children make accommodating efforts to accept the abuse and to keep the abuse secret.” Furthermore, according to Summit (1983), “when children do reveal their abuse, disclosure will be incremental over time, a process that often includes outright denials and recantations of prior disclosures, and then reinstatements of the abuse.” In a November 26 abs-cbnnews.com report, Child Protection Unit (CPU)-Philippines Executive Director Bernie Madrid said, “research shows 40% of children who are sexually abused never tell,” adding that, “In at least 30% of cases, it’s as if nothing happened, but it’s because the effects of abuse may not be immediate. We call it

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a time bomb [because] it may come up 12 years later, or when they’re married and are in their honeymoon.” According to the Facts for Families by the American Academy of Child and Adolescent Psychiatry (AACAP), “child sexual abusers can make the child extremely fearful of telling, and only when a special effort has helped the child to feel safe, can the child talk freely.” The AACAP’s advice to parents: “If a child says that he or she has been molested, parents should try to remain calm and reassure the child that what happened was not their fault.” Need for an upgrade. Based on the December 2006 Department of Justice (DOJ) report, “Protecting Filipino Children from Abuse, Exploitation and Violence,” a rise in reported cases of child physical and sexual abuse can still be considered a positive development, for it is “seen as an indication of the growing awareness and better monitoring and reporting system on the issue brought about by the continuing advocacy by the government and the NGO [in the] community.” (p. 16) Having said that, the DOJ added, “there is a need to upgrade competencies and skills of parents, community volunteers, programme managers, social workers, health workers, teachers, and other service providers including the pillars of the justice system to identify and respond to child protection issues through the creation of a caring and protective environment for children.”

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Child abuse in the Philippines: On the wane or just Laying low?

Focus on the family. Yangco also discussed, in her above-cited paper on a comprehensive approach to child maltreatment in the Philippines, the importance of a concerted effort among all key stakeholders in creating an environment that is “conducive to healthy, bright and productive children.” (p.109) In order to do this, Yangco asserted that “child abuse and maltreatment should always be understood in the context of

the child’s family and community, and therefore his/her environment,” stressing that, “(T)he family should thus be the focus and locus of all development efforts.” So, whether child-abuse cases in the country are actually declining, or the data just reflects victims’ reluctance to speak up, one thing is certain: the best way to combat child abuse is to have parents acting like parents.

Know the signs of physical and sexual abuse

Bantay Bata 163 is a “child welfare program of ABS-CBN Foundation that not only rescues and rehabilitates sick and abused children, but also provides shelter, therapy and quality home care for rescued children until they can be reunited with their families or referred to proper child-caring agencies.”

• • • •

The program’s website has posted some of the physical and behavioral signs of children who have been abused, either physically or sexually.

Physical signs • Sexually transmitted disease • Pain or swelling in genital area • Bruises, bleeding or discharge in vaginal or penile area • Pregnancy • Stained or bloody underclothing • Chronic genital irritation • Difficulty in walking or sitting • Frequent urinary tract or yeast infections

Physical Abuse Physical signs • Unusual bruises or welts on face, neck, chest, buttocks or genitals • Injuries in various stages of healing • Injuries in shape of object (e.g., belt, electric cord) • Unexplained burns on palms, soles, back or buttocks • Fractures that do not fit story of injury • Unexplained delay between occurrence of injury and medical help sought

Reports injury by parents Presents poor self-image Uses drug or alcohol Seems uncomfortable with physical contact

Sexual abuse

Behavioral signs • Refuses to partake in gym or other physical exercises • Relates poorly with peers • Acts overly seductive around others • Displays sexual behavior inappropriate for age Behavioral signs • Becomes a run-away or delinquent • Displays extremes in behavior-aggressiveness or • Exhibits drastic change in school achievement withdrawal and shyness • Displays regressive or childlike behavior • Displays self-destructive behavior • Uses foul language • Engages in destructive or delinquent behavior • Experiences nightmares or bed wetting • Fears going home • Fears parents The program also suggests calling its hotline 1-6-3 • Fears other adults to ask for help or to report suspected child abuse.

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NEWS ON THE NET Nation

House Panel OKs 'Kasambahay' Bill A committee report on consolidated bills seeking the protection of house helpers, or kasambahay, was approved by the House Committee on Labor and Employment and is set to be transmitted for discussions in the plenary. The measure seeks to provide a comprehensive package of benefits which include allowable days off and holidays, work contract, living quarters, food and medical provisions, Social Security System and PhilHealth coverage, annual salary increases and medical certificates to promote the welfare of domestic workers in the country. The consolidated “kasambahay” bill is one of the 24 priority measures targeted to be approved by the House of Representatives on third reading. One of the consolidated bills is authored by Democratic Independent Workers’ Alliance (DIWA) party-list Rep. Emmeline Aglipay.

International media remind President Aquino of pledge to protect newsmen Groups of journalists called upon President Benigno Aquino III to honor his pre-election commitment to defend press freedom in the

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Philippines. The International Federation of Journalists, Reporters Without Borders, and the New York-based Committee to Protect Journalists all appealed to President Aquino to prioritize and establish programs to protect journalists while combating impunity. This move by journalist groups came after the incident last Sunday when Daily Tribune reporter and Malacanang Press Corps member Fernan Angeles was shot six times near his home in Pasig City. Police are still investigating the incident and are still searching for the perpetrators. The National Union of Journalists in the Philippines reported that a total of 148 journalists have been killed in the country since 1986.

Strike, says Palace; caravan, say protesters Protesters composed of several transport groups organized a caravan to air their dismay over the continuous oil price hike by oil companies. Malacanang, however, downplayed what it called a failed transport strike. Nonetheless, transport group Piston continued its caravan and proceeded to the offices of oil companies in the city of Makati to demand price rollbacks, the scrapping of the Oil Deregulation

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Law and the removal of the VAT on petroleum products. The Oil Deregulation Law of 1998 liberalizes and deregulates the oil industry to ensure a competitive market. Recently, Senator Francis Escudero proposed a review of the law with a proposal of giving the Department of Justice and Energy powers to monitor and address rising oil prices.

Wage hike, price freeze ruled out Labor Secretary Rosalinda Baldoz announced that there will be no wage increase in the next few months notwithstanding the continuous increase in oil prices which might trigger a domino effect in the prices of commodities and services. She said that a wage increase in Metro Manila is not yet possible as the last wage order was approved in May 2011. Last week, the Trade Union Congress of the Philippines (TUCP) said that it plans to file a petition for a P90-increase in the daily minimum wage in the National Capital Region, CALABARZON and Region 3. Labor laws prohibit the disturbance of a wage order for one year unless a supervening event exists. The Labor department has yet to determine whether continuous oil price hikes qualifies as a supervening event.

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Asia’s Battle Against Climate Change Southeast Asia must redouble efforts to cope with global warming — or else By Pia Rufino

STRATEGY POINTS Southeast Asia is most vulnerable to climate change because of its long coastlines, high population density, and dependence on agriculture Indonesia, Philippines, Thailand, and Vietnam could lose more than 6% of GDP annually by 2100 — more than double the global average loss — if nothing is done to address and adapt to climate change The world, especially the largest economies that have contributed the most to global warming, must help the most vulnerable regions and communities

Imagine a whole island nation disappearing. That’s part of the alarming scenarios in many a climate change report, including the Asian Development Bank’s Strengthening Mitigation and Adaptation in Asia and the Pacific 2009. Sadly, things have not improved much in three years. With typhoons, floods and drought, Asia continues to suffer the harsh brunt of climate change. For the past two years, 42 million people were displaced in the Asia-Pacific due to extreme weather events and rising sea levels, the ADB said in its 2012 climate change report. And worse is yet to come. Hence, last week, the regional development lender again urged Asian countries to take actions immediately and further its drive to cope with climate-induced national disasters at the Asia-Pacific Climate Change Adaptation Forum in Bangkok. Inaction, the bank warned, could lead to devastation that would undo decades of development. Bindu Lohani, ADB’s vice-president for knowledge management and sustainable development, told the 800 attendees from 50 countries Asian countries would need an annual cost of $40 billion over the next four decades, or until 2050, to cope with climate change. He noted that only $4.4 billion was available for adaptation activities globally during 2009-2010. Southeast Asia among the most vulnerable. Its geographic and climatic conditions as well as economic and social characteristics make Southeast Asia one of the world’s most vulnerable to climate change, the ADB explains in the opening pages of its 2009

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Regional review on the Economics of Climate Change in Southeast Asia. The review examines climate-change issues with particular focus on five countries: Indonesia, Philippines, Singapore, Thailand, and Vietnam. The crucial statistic on page 5: Southeast Asia’s 563 million people are concentrated along coastlines, which are exposed to rising sea levels. Moreover, the region’s heavy reliance on agriculture, forestry and other natural resources makes it highly affected by extreme weather events associated with climate change, with

Southeast Asia also among the world’s largest forest product providers. Agriculture employed two out of five Southeast Asians in 2004 and contributed about 11% of GDP in 2006. The increase in extreme weather events and forest fires also risks vital export industries. But the biggest worry is the poor, who would be hardest hit by both killer disasters and the economic devastation that comes in their wake. Despite rapid economic growth, high poverty incidence remains in Southeast Asia: about 93 million still lived below the $1.25-a-day poverty line as of 2005.

MAPPING CLIMATE CHANGE VULNERABILITY Climate Change Vulnerability Index 2012

Bangladesh Cambodia Philippines

Haiti Sierra Leone

Zimbabwe Malawi Mozambique Madagascar

D.R Congo

Extreme risk High risk Medium risk Low risk No Data

Rank

Country

Rating

Bangladesh

Extreme

1

Haiti

3

Zimbabwe

2 4 5

Sierra Leone Madagascar

Extreme Extreme Extreme Extreme

Rank 6 7 8 9

10

Country

Rating

Mozambique

Extreme

Cambodia

DR Congo Malawi

Philippines

Extreme Extreme Extreme Extreme

Source: “World’s fastest growing populations increasingly vulnerable to the impacts of climate change” Mapplecroft, December 26, 2011.

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22 Maplecroft’s 2012 Climate Change Vulnerability Index (CCVI) maps the exposure and the adaptive capacity of 193 countries to climate change. It found that countries with the fastest population growth are increasingly vulnerable to climate change, including some Southeast Asian countries at “extreme risk.”

Richard Damania, World Bank Lead Environmental Economist for South Asia Region said in the U.N. Climate Change Conference in Denmark in 2009 that high population levels also mean greater pressure on an already stressed natural resource base. By 2050, he further said, South Asia’s population is likely to exceed 2.2 billion. Also expect declining crop yields and disease outbreaks. Extreme rainfall and winds associated with tropical cyclones will affect East Asia, Southeast Asia and South Asia, according to the United Nations Framework Convention on Climate Change (UNFCC), the U.N.’s international environmental treaty, on page 22 in its book titled Impacts, Vulnerabilities and Adaptation in Developing Countries, published in 2007.

‘Countries with fastest population growth are increasingly vulnerable to climate change, like Bangladesh, the Philippines, Vietnam, Indonesia and India’ ~ Maplecroft Report The Britain-based risk advisory company classifies 30 countries at “extreme risk,” including Bangladesh (2nd), the Philippines (10th), Vietnam (23th), Indonesia (27th) and India (28th). Bangladesh and the Philippines are among the world’s fastest growing economies with annual growth rates of 6.6% and 5%, respectively, the study indicated. Six of the world’s fastest growing cities – the Asian economic centers of Calcutta (Kolkata) in India, Manila in the Philippines, Jakarta in Indonesia and Dhaka and Chittagong in Bangladesh-are rated to be at “extreme risk” from the impacts of climate related natural hazards. “Population growth in these cities combines with poor government efficiency, corruption, poverty and other socio-economic factors will increase the climate risks to residents and businesses,” Maplecroft said in the report.

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The ADB said, in its March 2012 report Addressing Climate Change and Migration in Asia and the Pacific, that Indonesia, Myanmar, Philippines, Thailand, and Vietnam are especially at risk from cyclones. The northern and eastern parts of the Philippines and densely populated coastal areas of Vietnam and Cambodia are particularly vulnerable. Coastal flooding risk induced by climate change poses the greatest in Southeast Asia, with around one-third of the population concentrated in coastal areas. Indonesia, Myanmar, the Philippines, Thailand, and Vietnam are especially at risk. Also under threat are large populations across Vietnam. Almost half of its agricultural area where most of its

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population work would be flooded with a 2-meter rise in sea level.

drop in developing countries but South Asia will be particularly hard hit, as noted on page 479.

According to the UNFCC book, which outlines the impact of climate change in Africa, Asia and Latin America, flood disasters would hit Nepal, Bangladesh, Pakistan, and North India if glaciers in the Himalayas – the world’s tallest mountains, located in North India, Nepal and Tibet – should melt due to global warming. Then there’s food. Flooding in rural Vietnam would threaten the world rice market supplied by its ricefields. In terms of food security, the International Food Policy Research Institute said, in its 2009 report “Climate change impact on Agriculture and Cost of Adaptation,” the most important crops are projected to

Crop yields in Central and South Asia could drop by half by 2050, and 1.2 billion people could experience freshwater scarcity by 2020. That’s on top of vanishing islands and coastal communities, as noted in the ADB’s 2009 report. Climate change is also likely to have significant impact on human health. Warming is projected to increases outbreak of diseases, mortality due to diarrheal disease, thermal stress causing cardiovascular and respiratory diseases, vector-borne infectious diseases such as malaria and dengue, diarrhea, and malnutrition in South and Southeast Asia.

WHEN THE TEMPERATURE RISES Global temperature change (relative to pre-industrial level) 1o C 2o C 3o C 4o C 5o C 0o C Projected Impacts of Climate Change

Falling crop yields

Food

Falling yields in many developed regions

Possible rising yields in some high latitude regions

Water

Glaciers disappear

Ecosystems

Damage to coral reefs

Extreme Weather Events

Decreases in water availability

Sea level rise threatens major coastal cities

Rising number of species face extinction Rising intensity of storms, forest fires, droughts, flooding and heat waves

Risk of Irreversible Changes

Increasing risk of abrupt, large-scale climatic shifts

C = Celsius; CO2 = Carbon Dioxide Chart from The Economics of Climate Change in Southeast Asia: A Regional Review, by ADB, 2009, adapted from Stern, 2007

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24 Southeast Asia’s economic loss. If no action is taken, the ADB warns the Southeast Asia is also likely to suffer more from climate change than the global average in terms of economic loss by 2100. As noted in page 115, the region is likely to lose about an average of 2.2% on gross domestic product — more than three times the 0.6% decline projected for global GDP — even when considering just market effects mainly related to agriculture and coastal zones only. Meanwhile, “Indonesia, Philippines, Thailand, and Vietnam could suffer

a loss equivalent to more than 6% of GDP annually by 2100, more than double the global average loss,” based on the economic model carried out in the ADB study, cited on page 82, using the same model as in The Stern Review (2007) on climate change released for the British government.

So what to do? Southeast Asian countries are implementing adaptation programs to minimize the effect of climate change in all key climate-sensitive sectors, including water resources, agriculture, forestry, coastal and marine resources, and health,

WATER ADAPTATION FOR CLIMATE CHANGE Summary of Key Adaptation Options in Water Resources Sector

Practice

Reduced Impact

Rehabilitation of damaged irrigation and drainage facilities Extension of small-scale irrigation schemes Flood warning system

Improved flood control facilities, such as pumping stations, water gate Multi-purpose reservoirs, dams, water-impounding system

Integrated river basin development, water-impounding system Rain harvesting technologies

Water shortage, drought, erratic rainfall

Scale

Reactive/ Proactive

Local/ Reactive Sub-regional

Planned/ Autonomous

Planned

Beneficiary Sector

Agriculture

Extreme events, e.g. floods, storm surges

Local/ Proactive Sub-regional

Planned

Regional Drought, flood, erratic rainfall pattern, water shortage

Regional

Proactive

Viet Nam

Agriculture, Household, Industry, Power generation

Philippines, Viet Nam

Agriculture, Household, Industry

Thailand

Agriculture, Household, Industry

Singapore, Thailand

Autonomous Household

Indonesia

Household, Agriculture

Indonesia, Thailand, Viet Nam

Planned

Metering and pricing to Water shortage encourage water conservation

Local

Reactive

Autonomous Household

Regional/ National

Proactive

Planned

Sea water osmosis plant

Water shortage

Reactive

Agriculture, Coastal, Household, Industry

Local

Reclamation of used water

Indonesia, Singapore, Thailand, Viet Nam Viet Nam

Water shortage, drought, erratic rainfall pattern

Conjunctive use of water, training for efficient use of water from irrigation

Example

Household, Industry

Philippines, Singapore Singapore

Source: “The Economics of Climate Change in Southeast Asia” by ADB, 2009, pg. 100.

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as cited in Chapter 6 of the ADB Regional Review of The Economics of Climate Change in Southeast Asia.

built and upgraded in Philippines, Thailand, and Vietnam, and flood-prevention training is constantly conducted. Pumping stations and water-gate facilities, for example, are installed in Bangkok Metropolitan Administration areas for flood control.

Just dealing with one problem alone — water shortage — demands a host of programs and mammoth resources to deploy water harvesting technologies, improve irrigation facilities, promote the efficient use of water resources and better water management.

The Philippine government has recently promulgated its climate change plan (see box story). Among its initiatives, the country has developed the Small Water Impounding Project designed for soil and water conservation and flood control by holding as much water as possible during the rainy seasons. The Department of Agriculture said it plans to construct around 4,584 small-scale irrigation projects this year that would include small water impounding projects among others, the Philippine Daily Inquirer reported.

In Thailand, main adaptation activities in the country includes development of water resources for agricultural activities, drainage of water in low-lying areas to expand agricultural areas, upgrade of irrigation system, water resources management at river basin level, capacity building for water resource use and conservation in agricultural sector, based on a Report on Climate Change Management in Thailand. Flood-control facilities are continually being

Saving farming from warming. To adapt to climate change impacts

CLIMATE CHANGE ADAPTATION IN HEALTH Practice

Summary of Key Adaptation Options in health Sector Scale

Coordination with the groups

Local/ Sub-regional

Reactive/ Proactive

Planned/Autonomous

Reactive

Autonomous

Example Widely used

Rebuilding and maintaining public health infrastucture

Local

Reactive

Planned/Autonomous Widely used

Establish green, clean, and beautiful Local areas

Reactive

Autonomous

Widely used

Enhancing short-range and long-range forecasting and warning systems and improved surveillance (e.g. risk indicators, infectious disease outbreaks, etc.)

Local/ Sub-regional

Proactive

Planned

Used in some countries in the region

Local/ Sub-regional

Proactive

Planned

Widely used

Local/ Sub-regional

Proactive

Planned

Widely used

Local/ Sub-regional

Proactive

Planned

Used in some countries in the region

Education and awareness (public information drive, capacity building)

Enhanced infectious disease control programs (vaccines, vector control, case detection and treatment)

Disaster preparedness (climate-proofed housing design; etc.)

Source: “The Economics of Climate Change in Southeast Asia” by ADB, 2009, page 117

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26 on agriculture, South East Asia’s most commonly used adaptation measures in the region are farm-level adaptation practices including adjustment in cropping calendars and patterns, changes in management and farming techniques, use of heat-resistant varieties, diversified farming, intercropping and crop rotation, among others, the ADB said. These measures are helpful, the ADB said, but the government needs to strengthen local adaptive capacity by providing public goods and services, such as better climate information, research and development on heat-resistant crop varieties and other techniques, early-warning systems, and water-efficient irrigation systems, it added.

On the other hand, the most common adaptation in forestry are reforestation, afforestation, and improved forest management; establishment of earlywarning systems; practicing appropriate forest cultivation; awareness- raising regarding forest fire prevention, and; monitoring of degraded forests. Since 2006, the government along with its partner institutions has been developing a seasonal early warning system for managing fires in the peatlands of Central Kalimantan in Indonesia, according to US-based environmental think tank World Resources Institute Report Case Study “Managing Peatland Fire Risk in Central Kalimantan, Indonesia.”

The Climate Change Commission: Money where its mouth is The Philippines is prone to climate change effects such as coastal flooding and extreme heavy rainfall due to its geographical, geophysical and socio-economic circumstances, the climate change commission said in its 2010 accomplishment report, noting that 70% of its cities and towns are in coastal areas.

The 2009 simulation showed that major Philippine cities, including Cagayan de Oro and Iligan would be ravaged by massive floods from the overflow of river basins and sea level increase.

Last December, tropical storm Sendong slammed the cities of Cagayan de Oro and Iligan, claiming more than 1,000 lives, making it the deadliest cyclone to hit the Philippines since 2000.

To lessen the impact of climate change in the Philippines, then-President Gloria Macapagal Arroyo on October 23, 2009, approved the Climate Change Act (RA9729), which then created the Climate Change Commission tasked to formulate and implement plans to prepare and respond to natural disasters.

Sendong affected over 700,000 people in 789 villages in 56 towns and eight cities in 13 provinces and damage to property was P1.382 billion, based on a GMA December 29, 2011 report citing reports from the National Disaster Risk Reduction and Management Council.

On April 2010, the commission adopted the National Climate Change Framework Strategy for 2010- 2020 which serves as a basis for a program for climate-change planning, research and development, extension, and monitoring of activities on climate change.

Jose Ma. Lorenzo Tan, chief executive of the World Wildlife Fund for Nature-Philippines claims that this tragedy was predicted three years ago in the simulation of the effects of extreme weather events from climate change drafted by the Philippine Imperative for Climate Change, WWF and Filipino scientists.

After a year and seven months, NCCFS has been translated into a National Climate Change Action Plan (NCCAP) on November 22, 2011, outlining the country’s agenda for adaptation and mitigation. The government under the NCCAP, primarily targets the 10 poorest provinces and 20 poorest areas in the country with seven

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“Uncontrolled spread of fires in peatlands poses a serious risk to public health, livelihoods, and conservation efforts in Indonesia, and contributes significantly to climate change,” the report said, noting that peatland fires has caused millions to suffer from respiratory problems, apart from costing billions in economic losses in Indonesia and across Southeast Asia in 1997-1998. The ADB said early warning systems and awareness promotion should be intensified to better prepare people for forest fires as a result of climate change. Aggressive public-private partnerships for reforestation and afforestation should also be pushed.

On adaptation options and practices in the coastal and marine resources sector, mangrove conservation and plantation are found to be highly effective in reducing the impact of tropical storms and cyclones, according to the ADB report. Large-scale mangrove restoration and rehabilitation is considered main adaptation intervention in Vietnam, according to a world resources report 2010-2011 “Vietnam: Restoring Mangroves, Protecting Coastlines.” Based on the report, a large mangrove restoration and rehabilitation program in Kein Thuy District in Northern Vietnam reduced the wave height from an estimated

strategic priorities—food security, water sufficiency, ecosystem and environmental stability, human security, climate-smart industries and services, sustainable energy and knowledge and capacity development.

Other measures include solid-waste management initiatives under the Metro Manila Development Authority, as well as rehabilitation projects for Laguna de Bay and the Pasig River.

Lucille Sering, Secretary of the Climate Change Commission, said the plans outlined in NCCAP brought about an increase in the climate-change fund, from a mere 1%-1.17% of the 2011 budget to 5% of the national budget for 2012, ABS-CBN reported in November 2011.

DBM Secretary Florencio Abad also confirmed that the Calamity Fund will receive P7.5 billion, well higher than previous year’s P5-billion allocation.

Under 2012 General Appropriations Act, the Department of Public Works and Highways will receive P12.3 billion for disaster-preparation activities and flood-control projects such as the construction of flood barriers in major basins and rivers nationwide, the Department of Budget and Management (DBM) said in a Feb. 16, 2012 press release. Meanwhile, a total of P367 million is allocated to modernize Philippine Atmospheric, Geophysical and Astronomical Services Administration’s weather forecasting system, the budget is 100.5% higher than in 2011.

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The Department of Environment and Natural Resources (DENR) will get P2.7-billion fund for its National Greening Program, aimed at planting 1.5 billion seedlings in deforested areas by 2016. DENR’s Forest Protection Program will also be aided by a P857-million allocation, which will be used to hire people who will oversee and patrol 4.1 million hectares of untenured forestland. Meanwhile, the Department of Energy’s will receive P711 million to spent for environment-friendly and energy-efficient lighting fixtures for 120 government buildings and LED traffic lamps for 88 traffic intersections in the country.

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28 CLIMATE CHANGE ADAPTATION IN THE FOREST Practice

Summary of Key Adaptation Options in Forestry Sector Reduces Impact

Reforestation, afforestation, improved Forest degradation, forest management biodiversity loss

Scale

Reactive/ Proactive

Local/ Reactive Sub-regional

Planned/ Atonomous

Example

Planned/ autonomous

Widely used

Philippines, Viet Nam

Establishment of early warning system

Forest fire

Regional

Proactive

Planned

Use of appropriate silvicultural practices

Forest fire

Regional/ National

Reactive

Autonomous

Awareness-raising regarding forest fire prevention among communities

Forest fire

Regional/ National

Proactive

Planned

Monitoring of degraded forests

Forest degradation, biodiversity loss

Regional/ National

Proactive

Planned

Indonesia, Philippines, Viet Nam

Indonesia, Philippines, Viet Nam Thailand

Source: “The Economics of Climate Change in Southeast Asia” by ADB, 2009, page 107

4 meters to 0.5 meters and caused no harm in the area during the tropical cyclone in 2005. To cope with future threats of climate change, design of houses, buildings, and development areas is likewise adjusted. The Indonesian government unveiled a housing design for coastal areas which houses are raised 160 cm above the ground, as cited in the ADB study. In the health sector, the ADB said Southeast Asian countries have measures to control vector-borne diseases carried by mosquitos, like dengue, but a more proactive approach is needed, such as an early-warning system, improved surveillance and awareness promotion. Can Asia cope? If the litany of measures needed to cope with climate change, apart from stopping it, seems too voluminous and daunting to remember, let alone execute and manage, that’s exactly the situation Asia faces, especially the most vulnerable countries and communities. That the region should elevate adaptation to the forefront of development planning, socio-

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economic policy and budgetary priorities should be beyond question. So is the imperative to give special and sustained attention to disaster relief and risk reduction projects for the poor, who always suffer the highest casualties and the biggest livelihood damage due to extreme weather. On a global level, the most vulnerable regions cannot but demand more resolute efforts to reduce greenhouse gas emissions among major sources, especially the West and, to some extent, China. But given the past decade’s disappointing results of the Kyoto Protocol programs and targets to address global warming, the world’s main greenhouse gas sources must also devote more assistance for climate-change adaptation in the most affected regions. To be sure, this will be a hard-sell amid the global economic malaise. But this demand for help for Southeast Asia and the Pacific, along with other highly threatened regions, to cope with flood, food and water shortages, disease and displacement as the mercury climbs across the planet — this sorely needed assistance is not only a question of compassion, but more so an imperative of justice.

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A Mexican president, a Chinese tycoon, an African pop star and other U.N. heroes of the earth The UN Environment Programme has been honoring individuals and organizations for their leadership, vision, inspiration and action on the environment since 2005 through its flagship environmental award Champions of the Earth. Five most recent Champions of the Earth awardees were named on May 2011 whose daily work, leadership and advocacy represent green innovation in action. Mexico President Felipe Calderon was awarded the champion in the area of policy leadership for his commitment to lead international climate change discussions. He hosted the UN Climate Change Conference in Cancun, Mexico, last year which brought about new initiatives and institutions including the creation of a Green Climate Fund. Calderon has also made the Mexico a world leader in climate action. The country through its climatechange program, will use compact fluorescent lamp or other efficient lighting technology by 2012 to replace nearly 2 million refrigerators and air conditioners, and more than 47 In greening the world, million incandescent light bulbs. the international community must By 2012, Mexico commits to reducing 51 million tons of CO2 or the equivalent of all the vehicle-induced GHG emissions in Mexico City in four and a half years.

harness and recognize contributions in national leadership, enterprise, innovation and inspiration

Mexico is also using forest resources to mitigate climate change. It has incorporated 1.5 million hectares to the Payment for Environmental Services program thereby preventing the release of 2.2 million tons of CO2 into the atmosphere. For his Entrepreneurial Vision, Mr. Zhang Yue, founding chairman of the BROAD Group, is cited for business leadership on energy efficiency and sustainable production. BROAD Group is a world leader in the manufacture of central air-conditioning systems that use diesel or natural gas instead of electricity. The company claims that all its products sold to date has led to emissions savings of around 90 million tons of CO2. Yue, one of the wealthiest Chinese, campaigns for tighter government regulations on insulation and building standards and for the decentralization of power plants in the country. In terms of Science and Innovation, Russian scientist Dr. Olga Speranskaya is awarded as environmental champion for mobilizing civil society in reducing the harmful impact of toxic chemicals in Eastern Europe, the Caucasus and Central Asia. Nine of 12 countries ratified the Stockholm

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Convention on Persistent Organic Pollutants, and now participate as full Parties at its global meetings. She has also led campaigns to ban the burial and transport of hazardous chemicals. Dr. Speranskaya has helped NGOs execute more than 70 projects on toxic chemicals in Azerbaijan, Armenia, Belarus, Georgia, Moldova, Kazakhstan, Kyrgyzstan, Russia, Ukraine and Uzbekistan. For Inspiration and Action, co-winners are Louis Palmer of Switzerland for raising global awareness of the need for renewable energy and sustainable transport and Angélique Kidjo of Benin for her advocacy on social equity and women empowerment in support of sustainable development. Palmer, who is an adventurer, has led a “Zero Emissions Race of electric vehicles that crossed the globe in 80 days in 2010 highlighting the need for more sustainable transport and cleaner energy supplies. Prior to that, Palmer has built the solar-powered vehicle ‘Solartaxi’ in 2004 which he used to deliver a powerful environmental message to 38 countries that modern solutions to global warming are available, affordable and ready. Singer-songwriter Angelique Kidjo uses her prestige to speak out humanitarian and environmental change in support of a number of important causes, particularly girls’ education and sustainable development. Africa’s “premier diva” launched The Batonga Foundation in 2009 to support secondary and higher education for girls in Africa. In 2010, Kidjo was appointed as a Patron for the U.N. Music & Environment Initiative aimed at leveraging the influence of music to address global environmental problems.

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Kidjo’s Batonga video: Harnessing music, money and celebrity for the earth YouTube

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NEWS ON THE NET World

Annan: Syrians 'want to get on with their lives' Current joint U.N.-Arab League envoy Kofi Annan, who had previously met with Syrian President Bashar al-Assad and the Syrian opposition in separate talks, reported last Friday that he is working hard to end the now yearlong sociopolitical crisis and facilitate access to humanitarian relief in Syria. "The Syrian people want to get on with their lives," he said. "They are tired and they suffered a lot." Annan is keen to initiate positive action, pursue discussions and resolve issues with both sides; one of the actions being to send a new international monitoring mission to Damascus. In related news, Turkey has stated that it may set up a "buffer zone" inside Syria, for the purpose of protecting refugees fleeing government forces.

Argentina will sue over Falklands oil exploration Argentina is set to take legal action against companies involved in offshore oil explorations near the Falkland Islands to pressure the U.K. into sovereignty talks. This issue goes back to 2010 when the U.K. started drilling for oil near the disputed territory;

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early on, Argentina had even asked the U.N. to facilitate the talks. The U.K. has stated that it will negotiate sovereignty or oil rights only if the islanders ask for it. The long standing conflict, which has affected the Falkland Islanders deeply, is only the latest of the archipelago's sovereignty troubles, which have plagued it practically since it was discovered. Now, tensions have further heated up because findings by the British exploration firms may result in a potential tax windfall and a dramatic change in the islands' economy.

North Korea to launch rocket, sparking Western fears North Korea is reportedly planning to launch a satellite mounted on a rocket in mid April, to mark the 100th birthday of its late former President Kim Il-sung. Just two weeks before, the Asian country had just agreed to a moratorium on nuclear tests and long-range missile launches as part of a deal it entered with the United States. The U.S. has threatened to halt plans to resume a negotiated 240,000 tons of food assistance. In 2009, 11 weeks into his presidency, U.S. President Barack Obama was confronted by his first international incident – a North

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Korean missile launch that led to U.N. Security Council resolutions which underscored the fact that, as Obama stated then, "North Korea broke the rules." According to Asian affairs specialist Emma Chanlett-Avery, in a CRS Report on North Korea, the small nation has "been among the most vexing and persistent problems in U.S. foreign policy in the post-Cold War period."

President RamosHorta faces re-election battle in East Timor Nobel Peace Prize winner Jose Ramos-Horta is facing a difficult re-election bid for the presidency of East Timor, Asia's newest and poorest nation. He is up against 11 other candidates, several of whom – like Ramos-Horta – were also key people in the country's long fight for independence from Indonesia. The election held last Saturday is said to be a key test of the country's political stability; U.N. troops, situated there due to bouts of political unrest, are scheduled to depart later this year. For many East Timorese voters, economic issues are important factors. Although revenue from nearby oil fields raised the country’s per capita income to about $2500, most do not have access to the money, bringing down the average income to $3 a day. In fact, 41% of the population subsists on less than $0.88 a day.

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Making Your Business $u$tainable Lessons from MIT and Harvard on marrying corporate profits and social responsibility By Tanya L. Mariano

STRATEGY POINTS Sustainability is becoming a mainstream corporate agenda, says an MIT Sloan Management Review study, with more and more companies report profiting from sustainable practices Businesses also look to sustainability to drive innovation in their organizations, not just for image-building outside them Key lessons for aspiring sustainable enterprises: Get your CEO committed, adjust your business models, and join hands with entities inside and outside the organization

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Sure, the public loves environment-friendly companies, but did you know that by placing sustainability at the core of their business strategies, companies the world over are also making strides in innovation and profitability? According to a recent report in the Massachusetts Institute of Technology (MIT) Sloan Management Review journal (available for free after registering at their website), sustainability is nearing a tipping point: “the point at which a substantial portion of companies are not only seeing the need for sustainable business practices, but are also deriving financial benefits from these activities.” The report “Sustainability nears a tipping point” calls these trailblazing companies “Harvesters,” and they make up nearly onethird of survey respondents.

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By changing their organizational structures, business models, and operations to take on the sustainability challenge, Harvesters are increasing profits and driving innovation within their organizations, signaling to competitors “the possibility and potential of sustainability-based success.” Rising support for corporate sustainability. The study, which analyzes data from a survey of nearly 3,000 commercial sector executives from around the world, found that “70% of companies have placed sustainability permanently on their management agendas” and have done so in the past six years, and 20% from this group say “it’s happened in the past two years.”

the survey, are: customers’ preference for sustainable products and services, political and legislative pressure, scarcity of resources (like price volatility and increased commodity prices), competitors’ increasing commitment to sustainability, and more stringent requirements from partners along the value chain. A 2011 McKinsey & Co. study (registration required for download) also supports the finding that sustainability is gaining traction in the corporate world. Their global survey of 3,203 executives across a wide range of industries revealed that more and more companies are integrating sustainability into their business strategies, and not only for the sake of their image. The most frequently reported reason for becoming more sustainable is cost reduction, when just a year ago, most cited the need to manage corporate reputation.

A graph from the report illustrates this new trend. The top five reasons for corporations to become more sustainable, according to

GOING BEYOND DOLLARS AND CENTS

More companies put sustainability on their agenda Cumulative Number number of Business 2,500

2,000

When did the topic of sustainability first appear on your organization’s management agenda?

1,500

1,000

500

0 Before 1970

1974

1979

1984

1989

1994

1999

2004

2011

Year Sustainability First Appeared on Management Agenda

Chart from “Sustainability nears a tipping point,” 2012, MIT Sloan Management Review in collaboration with The Boston Consulting Group, page 3

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Sustainability reigns at Ayala Corporation and Manila Water You don’t have to do much convincing about sustainability at real estate, telecoms, water and banking conglomerate Ayala Corporation. The 177-year-old company has published sustainability reports since 2007 to tell shareholders and the public how its enterprises serve both shareholders and society. The 2010 report has sections on economic sustainability, environmental sustainability and social sustainability, as well as future issues and initiatives. Plus videos on shared values last year and Ayala’s sustainability push in 2010. As the concessionaire of the Metropolitan Waterworks and Sewerage Systems, the Manila Water Company brings clean water and wastewater services to more than six million residents of eastern Metro Manila and Rizal Province. In 2010, it received a number of awards, including the International Water Association Awards for reducing water loss in Manila. In 2011, global business strategy adviser Boston Consulting Group and Geneva-based international organization World Economic Forum recognized it as one of the new champions of sustainability. Says the report, by engaging in an innovative mix of natural resources conservation, physical pipeline and sewage infrastructure, and micro-businesses via the Water for the Community Program, Manila Water brings affordable water to its clients, especially the urban poor, and cuts water loss. Its commitment to social and environmental sustainability has reaped rewards, and the increased access to clean water by low-income households has translated to fewer illegal connections and less contamination in the water system. Water loss due to leaks and illegal tapping dropped from 63% in 1997 to 11% in 2010, and the number of people in eastern Manila with access to clean water rose from three million in 1997 to more than six million today.

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Green is the color of money. An analysis of sustainability’s role in innovation and growth is encapsulated in a 2009 Harvard Business Review study (registration required) authored by management guru C.K. Prahalad, Ram Nidumolu, and M.R. Rangaswami. The researchers found that “sustainability is a mother lode of organizational and technological innovations that yield both bottom-line and top-line returns. Becoming environment-friendly lowers costs because companies end up reducing the inputs they use. In addition, the process generates additional revenues from better products or enables companies to create new businesses.” According to the report, companies go through five distinct stages in their journey towards more sustainable practices: 1. Compliance as opportunity. The first stage involves complying with environmental laws complicated by geography and industry. To stay ahead of their sectors, companies follow the most stringent regulations or anticipate future standards, rather than just satisfy current minimum requirements. Hewlett-Packard, for instance, predicted a lead ban two decades ago and began exploring alternatives. Thus, HP could immediately comply with the European Union’s 2006 Restrictions of Hazardous Substances Directive. 2. Sustainable value chains. After legal compliance, organizations tend to become more proactive about environmental concerns. They reduce resource use and

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waste, which promotes a better overall image, cuts costs, and spawns new businesses. They rationalize and streamline each link in the value chain, usually starting with the supply chain, then moving on to operations, product returns, and workplace conditions. By allowing their employees to telecommute, IBM saves $700 million in real estate costs every year. and AT&T about $550 million. And people who telecommute up to three days a week report higher levels of job satisfaction and are 10%-20% more productive. 3. Sustainable designs for products and services. Once companies see that clients prefer eco-friendly products, they make new offerings or redesign existing ones. Clorox found that up to a third of consumers consider a product’s environmental pluses, and one in every seven regard sustainability and health as a major component of purchase decisions. The cleanser manufacturer then became “the first mainstream consumer products company to launch a line of non-synthetic cleaning products.” It spent over $20 million and three years to develop its Green Works line and, by the end of 2008, had cornered 40% of the $200-million natural cleaners market. 4. New business models. At this stage, companies explore alternative ways of doing business built around improving sustainability. A California start-up called Calera developed a cement-making process, which, if successful, will remove emissions from

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polluting industries as well as minimize those from cement production. Adapting the way coral produces reefs and shells from magnesium and calcium, the technology extracts carbon dioxide from factory emissions and bubbles it through seawater to create cement. It also hopes to sell the product in a radical way: give away the cement and charge industrial polluters for cutting their emissions. 5. Next practices. By challenging “implicit assumptions behind current practices,” executives develop innovations that could upend existing paradigms. Take the smart grid, which harnesses digital technology to manage consumer demand, power generation, transmission, and distribution, lower costs and make energy use more efficient. Making business sustainability work. The Harvard report cites “two enterprisewide initiatives help companies become sustainable.” First, top management must focus on the issue for change to happen rapidly. Then firms must recruit and retain talented people, who are in turn attracted by sustainable enterprises. Findings of the MIT report also underscore the importance of top-level support. It said Harvesters are 50% more likely to have a CEO committed to sustainability. Plus: these companies are more than twice as

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likely to have a chief sustainability officer and “50% more likely to have a person responsible for sustainability in each business unit.”

success that is now being enjoyed by Harvesters.

This is the first of three lessons from Harvesters, according to the MIT study: they have strong organizational support. They will also change business models to satisfy sustainability requirements, and third, are more collaborative with different groups, both inside and outside the organization, such as customers, suppliers, governments, internal business units, and industry associations.

For its part, Deloitte stresses the significance of performing a financial and sustainability analysis in developing a sustainability strategy. In “Sustainability 2.0: Using sustainability to drive business innovation and growth,” Deloitte lists a few guidelines. Among them, using a heat map to determine the sustainability opportunities and risks present. This is done by analyzing the financial impact and evaluating the sustainability priority of each link in a company’s value chain.

By being willing to change organizational structure and business models and joining hands with other groups for sustainability, companies can emulate the

Here’s an impact map that charts how different components of a food industry company’s supply chain affects its bottom line and its sustainability profile.

ANALYZING FINANCIAL AND SUSTAINABILITY IMPACT Illustrative industry: Food

Value chain components

Agrichemicals

Packaging

Food & Beverage

Grocers

Financial Sustainability Financial Sustainability Financial Sustainability Financial Sustainability Impact Impact Impact Impact priority priority priority priority

Design

LOW

HIGH

LOW

MEDIUM

LOW

MEDIUM

MEDIUM

HIGH

Source

HIGH

LOW

HIGH

HIGH

HIGH

HIGH

HIGH

HIGH

Make

MEDIUM

MEDIUM

HIGH

HIGH

MEDIUM

HIGH

LOW

NONE

Deliver

MEDIUM

LOW

MEDIUM

LOW

LOW

LOW

HIGH

MEDIUM

LOW

HIGH

LOW

LOW

LOW

LOW

LOW

NONE

LOW

LOW

MEDIUM

MEDIUM

LOW

MEDIUM

LOW

LOW

Use Return/End of life

Analyze the finacial impact of each value chain component to each sector

Evaluate the sustainability priority of each value chain component to each sector

Use the resulting heat map to analyze the sustainability risks/opportunities

Chart from “Sustainability 2.0: Using sustainability to drive business innovation and growth,” 2012, Deloitte Review, Issue 10, page 145

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Greenwashing: For some firms, it’s still just profit and PR About three decades ago an environmental activist and former professional snowboarder picked up a card in a hotel room that said: “Save our planet – Every day millions of gallons of water are used to wash towels that have only been used once. You make the choice: A towel on the rack means, ‘I will use again.’ A towel on the floor means, ‘Please replace.’ Thank you for helping us conserve the Earth’s vital resources.” The man thought this ironic: the hotel spent so much money telling guests to pick up their towels, a petty thing compared to the other more serious ways it was polluting the environment, that it seemed to him that what the hotel really wanted is to reduce laundering costs and improve its reputation. He then penned an essay denouncing the deceptive practice. This was how Jay Westerveld of New York came to coin the term, “greenwashing,” reports the New York daily Times Herald-Record. CorpWatch, a non-profit investigative research and journalism organization, defines it as, “the phenomenon of socially and environmentally destructive corporations attempting to preserve and expand their markets by posing as friends of the environment and leaders in the struggle to eradicate poverty.” While this seems to be the term that caught on the most, the phenomenon was first observed in the 1960s, according to CorpWatch. There was a sudden influx of “green” corporate advertising that sought to take advantage of the environmental movement of the day, and, as advertising executive Jerry Mander labeled it, “eco-pornography.”

The report advises companies to look at areas of the heat map where high financial impact aligns with high sustainability priority, as these represent opportunities for innovation and potentially large financial rewards, and to investigate discrepancies between sustainability priority and financial impact, which may indicate that too much or too little attention is being showered on one priority over another. Echoing the Harvard study’s findings, the Deloitte report also suggests that companies “look over the horizon – Although the heat map provides a currentstate snapshot of an industry and company, leaders should keep in mind that the future landscape could look quite different.” For instance, pollution and population growth

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could greatly affect the future availability of a resource that, today, is still abundant. More work ahead for sustainability. According to the MIT study, most respondents perceived Europe to be a leader in sustainability, but their data show that commitment to sustainability in emerging markets such as Asia Pacific, South America, and Africa is actually growing at a faster pace than in developed economies. Still, in terms of sustainability reporting, much needs to be done. According to the press release for the most recent Asian Sustainability Rating, an analysis of public disclosure of environmental, social, and governance (ESG) issues of 750 companies from 10 Asian countries, the overall score

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for Asia was just 36% – a marginal increase from 35% the previous year. In the country rankings, the Philippines placed last, sliding down one spot from last year, while South Korea remained at number one.

of the Asian Sustainability Rating. Manila Water was also recognized by the Boston Consulting Group and the World Economic Forum as one of the champions of sustainability in their 2011 report, “Redefining the future of growth: The new sustainability champions.”

THE ASIAN SUSTAINABILITY RATINGS 2011 Country Rank

2011 Average

2010 Rank

2010 Average

1. South Korea

48%

1

48%

2. Thailand

43%

4

40%

3. Malaysia

39%

3

42%

4. India

38%

2

43%

5. Taiwan

36%

6

38%

6. Singapore

35%

5

39%

7. Cina

34%

10

27%

8. Indonesia

34%

7

38%

9. Hong Kong

32%

8

33%

10. Philippines

26%

9

29%

Source: Press release for the 2011 Asian Sustainability Rating

South Korean companies were found to be the leaders in ESG reporting – registering the highest percentages of ESG issues being disclosed or addressed -- while Philippine companies Alliance Global, JG Summit Holdings, and International Container Terminal Services took the bottom spots. Still, some local companies do stand out. Ayala Land and Manila Water were singled out as the leaders in sustainability disclosure in the 2010 country analysis

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Gone are the days when sustainability was just an item in a company’s corporate social responsibility activities. Aside from helping the environment, early adopters are now also seeing a spike in innovation and profits by making sustainability a central business thrust. With more and more companies elevating it to the level of a vital management agenda, today’s businesses may need to do the same in order to remain relevant.

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NEWS ON THE NET Business

PAL hikes plane ticket prices Carrier Philippine Airlines is increasing its fuel surcharge by over 15% for most of its domestic flights. This is to help the airline cope with erratic fuel prices caused by shifts in the oil industry. Interestingly, the increase took effect last March 14, one day before PAL announced a new set of promotional fares to celebrate its 71st anniversary. These developments are in motion amid talks of PAL selling a controlling stake to San Miguel Corporation, after initial rumors of a Manny V. Pangilinan buyout died down.Recently other Asian airlines have posted losses. Cathay Pacific's 2011 net profit plunged 61% compared to its 2010 earnings; however, the Hong Kong carrier's troubles don't compare to India's Kingfisher Airlines, a company that has yet to turn a profit since its launch in 2005.

Jollibee Foods steps up expansion in China Last year, Jollibee announced a major expansion drive that would include 280 new stores, including 90 in China. This was in line with Jollibee's goal of matching international sales with local numbers, according to CEO Tony Tan Caktiong. This month, the local fast-food giant

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further expanded operations in China with the purchase of a 55% interest in San Pin Wang, a chain of 34 beef noodle restaurants. This is Jollibee's third fast-food chain in China. The other two are Shanghai-based Yonghe King and Beijing-based Hong Zhuang Yuan. As of January 2012, the two accounted for 11% of Jollibee's worldwide sales. Last January, Jollibee also bought into SuperFoods, which operates Highlands Coffee, Pho24 and Hard Rock Café franchises in Cambodia, mainland China, Hong Kong, Japan, Vietnam, and the Philippines.

NAIA Terminal 3 soon to be fully operational The Department of Transportation and Communications (DOTC) has assured that Terminal 3 of the Ninoy Aquino International Airport (NAIA) will soon be fully operational. The announcement comes nearly a decade after the terminal's original inauguration date. Last Monday, contractor Takenaka Corp. signed a memorandum of understanding, covering the “Civil Works Agreement Estimate of 23 Systems.” In connection with this, the government is considering raising NAIA terminal fees to help fund the badly needed improvements. DOTC Secretary Mar Roxas has also said, “Some of the operations of Terminal 1 will

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be transferred in Terminal 3 once the 23 systems are delivered.” Takenaka was originally commissioned to build Terminal 3 in 1998, but construction was halted in 2002. The timeline of the NAIA Terminal Build-OperateTransfer scheme is detailed in a paper by University of the Philippines professor Maria Fe Villamejor-Mendoza.

Chikka and rival Wolfpac merge Former rivals Chikka and Wolfpac have merged to form one of the largest Web and mobile app development firms in the Philippines. Wolfpac went big in 2001 with successive releases of popular games such as PetPals and Text2Millions, way before casual games and smartphones were prevalent. Chikka launched flagship Chikka Text Messenger at around the same time. Chikka CEO Chito Bustamante said, "The resulting powerhouse now serves as an incubator for new technologies and innovation, producing telco-grade platforms and systems, and real valueadded services for the new digital consumer, including corporate partners." Chikka will be the surviving entity after the deal is finalized, although both companies had already been under Smart Communications’ control for years. Smart acquired Wolfpac in 2004, and Chikka in 2009.

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Green Gadgets Make Their Way to the Mainstream A look at everyday technologies that run on renewable energy By Marishka Noelle M. Cabrera

STRATEGY POINTS Companies are finding solutions to provide households in least developed countries access to electricity by harnessing energy from renewable sources There are all sorts of appliances – cookers, lamps, chargers, purifiers, refrigerators – that can now run on renewable energy

Imagine a world without electricity—no lights to turn on at night, no television or radio, no mobile phones or computers, no means to power the most basic appliances. For many residing in least developed countries, they do not have to imagine. This is their reality. For those who lack power, companies are harnessing the power of renewable sources—solar, wind, geothermal, hydro, ocean, and biomass—to provide cleaner and safer electricity to far-flung communities. A report from Technology Review, published by the Massachusetts Institute of Technology (MIT), shows that advances in technology and the falling cost of LED (light-emitting diode) lighting, batteries, and solar panels have made it possible for companies to provide electricity to households in least developed countries, such as those in Africa. Over the years, advances in technology are opening up the market for solar energy, and companies are not passing up the opportunity to serve some 1.3 billion people without access to grid electricity. “While in most parts of the world solar power typically costs far more than electricity from conventional power plants—especially when including battery costs—for some people, solar power makes economic sense because it costs half as much as lighting with kerosene,” the report says. And yet, the price of a solar lighting system is still too steep for many. As a solution, Eight19, a Cambridge, U.K.-based company, introduced a prepayment plan

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Green gadgets make their way to the mainstream

for its IndiGo solar-battery systems. Users can buy a scratch card, and then text the number on the card to Eight19 to receive a verification code, which they then enter into a keypad on the battery pack of their IndiGo systems. Entry-level IndiGo systems can provide anywhere from two to 80 watts. Other companies like ToughStuff, D.light, and SolarWorld also strive to bring power to the developing world through products that make use of solar energy. Renewable energy for human development. What we in urbanized societies often take for granted is a gift for those in far-flung areas where progress has yet to trickle in. The rising cost of fossil fuels, not to mention the environmental hazards they bring, have made it all the more difficult for governments to provide rural societies with this basic necessity. A joint publication of the United Nations Environment Programme (UNEP), United Nations Conference on Trade and Development (UNCTAD), and the Office of the High Representative for the Least Developed Countries, Landlocked Developing Countries and Small Island Developing States (UN-OHRLLS) advocates the development of a green economy for the progress of least developed countries. The publication emphasizes: “Lack of modern electricity infrastructure in rural regions and access to the development options that electricity opens are persistent impediments to economic development in [least developed countries] where 77 per cent of the population is without access to electricity.”

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Meanwhile, a 2009 report of the U.N. Secretary-General on the promotion of new and renewable sources of energy shows how access to affordable, modern energy can help achieve sustainable development, as well as the Millennium Development Goals. The report also reiterated the role of renewable energy in reducing greenhouse gas emissions, enhancing energy security, and accelerating economic growth and employment. The race is on. To be sure, the race to develop sustainable, cost-efficient, and accessible renewable-energy systems is just beginning. The good news is that more and more companies and individuals are adopting the green mindset, which is the driving force behind the technological innovations in the eco-friendly products we see today. In Ernst & Young’s “Tracking Global Trends: How six key components are shaping the business world,” clean technology, or cleantech, becomes a competitive advantage. The advisory firm predicts that as renewable-energy projects “scale up,” their prices will continue to fall. In addition, companies will be making cleantech a strategic priority either by “greening” their existing products or by moving into ventures outside their traditional line of business in an effort to “green” their image, so to speak. The Global Consumer Wind Study 2011 commissioned by Vestas, a Danish company specializing in wind turbines, covered a total of 31,000 consumers, 26 markets, and 31 leading global brands, and found that 90% of consumers worldwide

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42 want more renewable energy to be utilized. Furthermore, with climate change seen to be as “the greatest single global challenge,” consumers tend to have “a more positive attitude towards purchasing brands they perceive to be climate-friendly.” Here’s a look at some everyday gadgets that run on renewable energy: Wind-powered generator. Featured in environmental blog EcoFriend, the Eolic is a foldable wind-powered generator designed to generate off grid electricity particularly in areas that are under construction or are recovering from disaster. One of the designers, Marco Madia, says in his portfolio that this lightweight generator made of aluminum and carbon fiber is enough to provide electricity to a small house. Water purifiers using solar energy. Another article from EcoFriend features different water purifiers that utilize energy from the sun. For example, Solaqua makes use of infrared and ultraviolet rays to purify about 10 liters of water at a time. In the Solar Water Purifier, water undergoes a two-step process—in the first tray, water is evaporated using heat from the sun, while the second tray removes impurities with ultraviolet rays. The Solar Bottle is a portable water purifying system that uses the SODIS (Solar Water Disinfection) process to remove pathogenic microorganisms in the water through ultraviolet A or UV-A radiation. Refrigeration systems. Promethean Power Systems is a company that provides refrigeration systems in off-grid and partially electrified areas in developing countries. Their technology is mainly used

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The Solar Bottle helps people avoid epidemic diseases by disinfecting the water Photo from

EcoFriend

for cold-storage applications, such as preserving milk, fruits, and vegetables in areas where electricity is intermittent. The secret is in the thermal battery that “stores and releases cold thermal energy.” It acts as an electrical battery, but instead of supplying an electrical current, it gives a stream of cold fluid, which can then be used for chilling products. Though the system does not primarily run on renewable energy, the battery makes use of available grid power to recharge itself, thereby eliminating the need for diesel-powered generators. Solar cooker. As an alternative to liquefied petroleum gas and electricity, the solar cooker makes use of sunlight, then converts it to heat energy and retains it for cooking. The non-profit organization Solar Cookers International describes the common types of solar cookers. Heattrap boxes cook at moderate to high temperatures and are commonly used in India. Mainly used for industrial cooking, curved concentrators require frequent adjustment and supervision because it cooks food fast at high temperatures. Panel cookers are a combination of heat-trap and curved concentrator cookers.

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a curved concentratorDifferent types of solar cookers: a box cooker (left), a panel cooker (center), and cooker (right) Photos from the Solar Cookers International

Emergency gadgets. When power is out, how do you survive? EcoFriend features a couple of gadgets that can get you through an emergency situation. Track Talk, for instance, is equipped with a flashlight, digital compass, and a communication facility, and can be charged using solar energy. A flashlight sans batteries, Bottle Light is fitted to replace the cap of an empty plastic bottle. The user presses the bottle so the compressed air can move to the system and “trigger the photons outside as light.” The Sherpa X-ray Torch works by using the mechanical energy produced by winding up the system. Solar- and water-powered street lamps. Designed by Hungarian Adam Mikloski, the solar- and water-powered Mango street lamp takes its cue from mango leaves. To power the LED bulbs’ rechargeable batteries, solar cells are installed on top of the leaves, while the shape and positioning of the leaves funnel rainwater into a water turbine. Portable chargers. For those wanting to adopt a greener lifestyle or those who just enjoy being outdoors a lot, portable

The

Solar cells on the top of the leaves Water turibine under the water tank

How the Mango street lamp works

Photo from Adam Mikloski’s site

chargers are for you. According to its website, HYmini is a “hybrid mini green power station that fits in the palm of your hand.” The HYmini uses solar, wind, and conventional power to gather enough energy to recharge 5V devices like the iPod, mobile phone, digital camera, and MP3 player. TreeHugger, a site dedicated to green news and eco-solutions, gives a run down of the renewable chargers they love and those they “will never fly.” Biogas. In a feature on the International Committee of the Red Cross website,

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• March 19-25, 2012


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Green gadgets make their way to the mainstream

inmates in detention facilities in the Philippines are applying renewable energy in their day-to-day affairs with the use of biogas—a gaseous fuel produced by the break down of organic matter. Instead of using firewood, a Cagayan de Oro jail uses biogas to cook for more than 1,000 inmates. “From the toilet, the waste goes to an inlet box where it breaks down and gives off methane,” ICRC water and habitat

on the kitchen roof to heat water used for cooking. A Liter of Light. In the slum areas where conditions are dire and even light from the sun cannot shine through people’s homes, solar bulbs can make a difference. The Isang Litrong Liwanag (A Liter of Light) project aims to bring this eco-friendly bulb to low-income communities. A step-bystep guide is downloadable from the

The video shows how life in low-income communities is being illuminated by a simple, yet valuable creation Video from Isang Litrong Liwanag

engineer Gavin Macmillan explains, “From the production chamber, the gas goes to an outlet box and flows into the pipes used for cooking.” Meanwhile, in Bukidnon, the Valencia City Jail uses solar panels installed

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Isang Litrong Liwanag website. The solar bulbs are made from plastic bottles filled with a solution of water and bleach. The bulb is then installed on the roof of the house using galvanized iron sheets, and gives off approximately 55 watts of light.

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NEWS ON THE NET

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Technology

Yahoo sues Facebook over 10 disputed patents in the U.S. Yahoo is claiming that Facebook has infringed on 10 of its patents, and has filed an intellectual property lawsuit against the social networking giant. The move is reminiscent of Yahoo suing Google years ago, right when it was about to IPO. Google settled the major patent dispute with Yahoo less than two weeks before it went public, by giving Yahoo 2.7 million shares of its stock. The tech industry has been very vocal regarding the issue; pointing out both the timeliness of Yahoo's seemingly low-blow attempt to squeeze money out of Facebook right before flotation, and the absurdity of what appears to be a broken patent system. To underscore the irrationality of Yahoo’s allegations, TechCrunch analyzed the patents in question and listed other websites that Yahoo can sue based on similar grounds.

LinkedIn is a hacker's dream tool LinkedIn is a social media site specifically used for professional networking. Businesspeople, marketers, and headhunters all over the world use the site for research and recruiting purposes.

The

An infographic prepared by selfprofessed "LinkedIn expert" Wayne Breitbarth and his team shows how the site's users capitalize on their membership. CEO April Rudin of marketing specialist firm the Rudin Group details how LinkedIn can be used for social media marketing. However, awareness is also being raised rnow of the fact that hackers can use the information on members’ profiles to carry out pinpoint "social engineering" attacks – otherwise called "spear phishing." In the Philippines, LinkedIn members have reached one million, accounting for a quarter of the site's Southeast Asian demographic.

U.S. DOJ targets Apple and publishers in e-book price-fixing probe The U.S. Justice Department, in cooperation with the European Competition Commission, is looking into possible antitrust violations involving Apple and five book publishers. It is alleged that the companies worked together in 2010 to control e-book prices. The two agencies are collaborating on the investigation; although the U.S. seems intent on suing Apple, while the EU seems open to negotiating a settlement right away. Accusations regarding antitrust violations have come up against

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Apple before. Most recently, Apple was subpoenaed by the U.S. Federal Trade Commission as part of its antitrust probe of Google.

Hottest new apps out of SXSW 2012 The South by Southwest Music Conference and Festival (SXSW) is an annual conference held in Austin, Texas, that has acted as a meeting ground for creatives for over 20 years. According to SXSW's official website, "SXSW's original goal was to create an event that would act as a tool for creative people and the companies they work with to develop their careers, to bring together people from a wide area to meet and share ideas. That continues to be the goal today whether it is music, film or the internet." Recently it has made waves as a springboard for startups – particularly those involved in interactive services. Great examples are the launch of Twitter at SXSW in 2007 and Foursquare in 2009. This year, however, startups are vying for attention as the conference has gotten bigger and more cluttered. CNET names several promising applications, including Highlight, which has been described as a "people discovery" app. Glancee is similar, but less sleek venture. One controversial project is Homeless Hotspots, which turns homeless people into mobile hotspots.

• March 19-25, 2012

TCR Volume 2 Issue Number 11  

March 19-25, 2012