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3 Maute group members nabbed in Lanao del Sur town

AUTHORITIES ARRESTED on Wednesday three members of the Maute terror group in Piagapo, Lanao del Sur. The three were identified as Apao Dimacaling, Alex Braad and Kalal Berongan. They were in possession of rocket-propelled grenades, materials for improvised explosive devices and a grenade launcher when military and police personnel raided their lair in Barangay Gacap. Chief Superintendent Graciano Mijares of the Police Regional Office-Autonomous Region in Muslim Mindanao yesterday said the joint operation of the Lanao del Sur provincial police and the Army’s 103rd Brigade was assisted by local officials in Piagapo. “We also ought to express gratitude too to the vigilant Maranao religious and traditional elders there for helping locate them,” he said. Mr. Mijares and Maj. Gen. Roseller Murillo of the Army’s 1st Infantry Division both said local officials have confirmed that the three men belong to the Maute terror group that laid siege to Marawi City from May to October last year. — John Unson/philstar.com

For a few hours of distraction

By Alexander O. Cuaycong

BY WAY of background for the uninitiated: Project Shrine Maiden is a collection of manic-shooter video games published by Team Shanghai Alice. In each of the titles from the series, players must navigate their chosen character against waves upon waves of enemies to reach the final boss. The games are characterized by their intense and memorable music, as well as the way enemies shoot projectiles, often in dizzying patterns to make avoiding them more difficult. These video games, released to dovetail with the franchise’s increasing popular-culture presence via manga, soundtracks, and even novels, have cemented the Project as a strong and prolific intellectual property.

Needless to say, the Project’s main video game branch has spawned spin-offs, with varying levels of quality. Some are clear cash grabs intended to tap an intensely loyal fan base, while others are venerable entries in their own right. Touhou Kobuto V: Burst Battle, developed by Cubetype and published by NIS America, tries hard to be the latter, with uneven results.

Touhou Kobuto V is a one-on-one fighting game in which players pick one of 10 available characters from the Touhou universe to do battle in a three-dimensional arena. Players dash around and about, throwing spells and magical attacks at various speeds and degrees, in an effort to whittle their opponent’s health down to zero. The management of stamina, called the Action Gauge, and the pseudo-ammo counter called the Attack Gauge, are important gameplay features, as running out of either results in fatigue or an inability to attack. And with a variety of attacks on tap both on the ground and in the air, as well as melee attacks when opponents draw in close, there can be no questioning the game’s intent to delight. Fights invariably get intense, with characters zipping around at high speeds, dodging, weaving, and even flying past projectiles to avoid getting hit.

Unfortunately, Touhou Kobuto V’s grand design is let down by questionable camera controls. The POV emanates from the character’s shoulder, providing an awkward third-person perspective that hinders depth perception and thereby makes a number of attacks almost impossible to see and avoid. Combined with a glaring lack of an embedded tutorial on the game’s mechanics, the limitation gives it an unpolished feel. And while glimpses of its potential are provided every now and then, it inevitably falls short during fight sequences. There seems to be no discernible way to figure out how battles evolve and develop, making the exercise feel more like button mashing than anything else on the whole. The Story Mode is a letdown as well; it comes off as fairly dull, with no real character variations, and short to boot, ending too quickly for comfort.

Thankfully, Touhou Kobuto V’s music design is outstanding, and shines through despite its gameplay flaws. And while its 3-D graphics aren’t particularly eye-catching, attacks are flashy and entertaining to watch, never mind their relatively low resolution, and the drawn character sprites give credit to its source material. Amping up the fun factor is a standard Versus Mode; for those who find going up against AI dull and detaching, the option of playing against a friend is a welcome one.

In sum, Touhou Kobuto V has its roots going for it, but it’s hampered by bad camera placement, awkward controls, and the absence of a tutorial. The soundtrack and artwork are top-notch, though, and while they might not be enough to provide it with universal appeal, it’s still a good pickup for fans of the Project out for good music and a few hours of distraction.

Video Game Review

Touhou Kobuto V: Burst Battle
Nintendo Switch

THE GOOD:

• Affecting music

• Captivating artwork that pays homage to source material

• Capable of moments of brilliance, and can be compelling when played with a friend

• Runs smoothly, with no frame drops or stutters

THE BAD

• Finicky controls and POVs

• Small character roster (nine available, with one on offer as downloadable content)

• Lack of gameplay depth

RATING: 7/10

Bourse recovers to close at 2018’s 7th record high

By Arra B. Francia, Reporter

THE MAIN INDEX managed a technical rebound to close at 2018’s seventh record high on Thursday — even as it again stopped short of 9,000 — after taking a breather in the wake of the previous peak marked  last Tuesday.

The Philippine Stock Exchange index (PSEi) gained 78.94 points or 0.88% to close 8,999.17, while the all-shares index went up 39.56 points or 0.76% to 5,245.25.

RCBC Securities, Inc. noted in its Stock Market Daily Recap report that “[t]he PSEi opened higher, moved into negative territory towards noon break and upon resumption of trading in the afternoon, but steadily climbed and spiked at the close.”

“I think it’s just really a technical behavior of the market:  nothing of the fundamental reasons that’s supporting this,” Summit Securities, Inc. President Harry G. Liu said by phone yesterday.

Asked on chances PSEi will finally breach the 9,000 mark, Mr. Liu replied: “I feel strongly soon that we will be able to reach that. Tomorrow probably, there’s a very big possibility.”

Thursday’s list of the 20 most active stocks showed 12 gained, led by Bloomberry Resorts Corp. that surged 8.09% to P12.82 apiece and including LT Group, Inc. that went up by 5.78% to P23.80; Jollibee Foods Corp. that added 3.90% to P293; Robinsons Land Corp. which was up 3.85% to P21.60 and Megawide Construction Corp. that increased by 3.52% to P20.60 each.

The six stocks that sank were led by Alliance Global Group, Inc. and SM Prime Holdings, Inc. that dropped 1.25% to P15.80 apiece and by 1.03% to P38.50 each.

Many of PSEi’s counterparts elsewhere in Asia succumbed to weakness in the wake of falls by the S&P 500 (by 0.06%) and Nasdaq Composite (by 0.61%) indices.

Japan’s Nikkei 225 and Topix index, Hong Kong’s Hang Seng Index, the Shanghai Composite Index and the Straits Times Index fell by 1.13%, 0.88%, 0.92%, 0.31% and 1.01%, respectively, while the Jakarta Composite Index closed relatively flat and South Korea’s Kospi gained by 0.95%.

Locally, all sectoral indices gained, led by mining and oil that surged by 472.22 points or 3.99% to finish 12,283.04, followed by holding firms that went up by 121.33 points or 1.32% to 9,257.77; services that rose by 20.85 points or 1.24% to 1,696.34; industrials that increased by 114.40 points or 0.95% to 12,050.75; property that edged up by 14.56 points or 0.35% to 4,091.82; and financials that inched up by 1.36 points or 0.06% to 2,265.11.

Stocks that advanced outnumbered those that fell by 116 to 105, while 41 others were flat.

Volume improved, with 1.32 billion shares worth P8.88 billion changing hands compared to Wednesday’s 896.77 million shares worth P8.46 billion.

Foreigners reverted to buying mode with P119.62 million in net purchases marking a turnaround from Wednesday’s P47.28-million net sales.

All-Star selection

The premise of Russell Westbrook’s comments is the same as that of just about any other player before him: He believes a teammate got shafted by voters to the All-Star Game. And he’s right; Paul George deserves inclusion in the annual spectacle. In many respects, the latter is the National Basketball Association’s best two-way competitor who never seems to take a breather, preferring instead to keep moving as a safety-valve second option on offense and as a multiple-position anchor on defense.

Unlike most others who stand up for their teammates, however, Westbrook didn’t stop with criticizing George’s snub. He questioned the fairness of the process by mentioning that the current roster of All-Stars has “four people from one team, you’ve got guys complaining about getting snubbed until they get in, you’ve got guys just talking about it all the time. But the guys that deserve it — should be in — are not. I just don’t understand. Doesn’t make any sense.” In other words, he not only propped up a fellow Thunder; he threw shade on some of those who claimed the privilege.

Perhaps Westbrook would have gotten away with his spirited backing of George had his references, while indirect, not been apparent. Unfortunately, they were clear even to casual observers. And, in light of his disappointment, who can blame the Blazers’ Damian Lillard and the Warriors’ Stephen Curry, Kevin Durant, Draymond Green, and Klay Thompson if they felt they were being unfairly cast as undeserving.

To be sure, “deserve’s got nothin’ to do with it,” as William Munny famously said in “Unforgiven.” The process is such that anybody can literally be selected for the All-Star Game. Fans make up half the vote tally, with scribes and players serving as a collective corrective. And because there are only 12 available slots from each conference, an imbalance is inevitable. It’s why Westbrook’s other Big Three teammate Carmelo Anthony is no longer in after eight straight runs as part of the East contingent. It’s also why George has the going harder for him in the West.

In the final analysis, Lillard doesn’t have to defend himself. He’s an All-Star, period. Meanwhile, life goes on for George, who would have welcomed the distinction, but who has rightly moved on. It’s interesting to see how the dynamics will play out during the Game itself, especially with the new format that has top vote getters LeBron James and Curry choosing members of their respective squads. Needless to say, the fans can’t wait.

 

Anthony L. Cuaycong has been writing Courtside since BusinessWorld introduced a Sports section in 1994. He is the Senior Vice-President and General Manager of Basic Energy Corp.

Images of celebrity

“The nice thing about being a celebrity is that when people bore you, they think it’s their fault.”

— Henry Kissinger,
US diplomat

In showbiz and politics, people aspire to be famous and popular. Recognition seems to be the most important thing — good or bad.

A century ago, the playwright, actor, songwriter George Cohan once commented, “I don’t care what you say about me as long as you spell my name right.

The image of the celebrity is paramount. His/her success is measured by public perception and acceptance. He/she projects a well-crafted, polished persona, one that highlights qualifications, solid achievements and assets.

The impressionable public has long been conditioned by media to accept the best-packaged media magnet. Fans and fanatics rush to buy the products, patronize movies, and vote — as endorsed by popular personalities. Other effective media tools are advertisements, infomercials, ratings reports (accurate or contrived), and a lot of hype.

Actors and TV broadcasters have the political advantage of visibility. They are easily recognizable. Name and face recall give these popular individuals the winning edge during elections. It does not matter is the stars are not capable of making significant contributions to society. (Other than to look tough in an action movie or fabulous in a commercial.)

An example is a media-genic star who aspired to be a national legislator. The bronzed hunk tried reinventing his image to gain acceptance on all levels. He dabbled in elite sports such as fencing, riding and golf. He ran several times and failed. Finally, he realized that he was shooting for the moon. When he scaled back his ambition, he made it in local politics. There he can shine as a hands-on official.

Mileage is a must — to compensate for a lack in qualifications. Ironically, a health buff endorsed both a vitamins antioxidant and a cigarette brand. Clearly he had his priorities mixed up. (Cigarette smoking is now banned on the streets and in buildings.)

Endorsements are the favorite vehicles for celebrity self-promotion to the masses. The TV ads offer an assortment of products plugged by public officials, political aspirants and actors — vitamins, toothpaste, alcohol, detergent, shampoo, milk, canned food, feminine products, and cosmetic enhancement procedures.

Actors can do what they want.

But public servants can do some advocacy work and use media to create awareness on particular issues such as health, clean air, protecting the environment, global warming. They should not promote commercial products. It is distasteful and appears to be a conflict of interest.

Caveat emptor: Buyers beware. The celebrity endorser does not necessarily use the products. There are no guarantees for lighter skin, spot-free laundry, or fresher breath. The ad is a marketing tool that is used to broaden public exposure for both the product and the star. In the process, he/she earns a substantial amount.

Some public officials have appeared in self-serving “at work” ads. The department or agency’s budget paid the bill for production and air time. The boss (who aspired to run for a higher public office) justified the infomercial was needed for public awareness. The ads conveniently provided early media exposure, circumventing the prescribed campaign ban period. Now this form of expensive self-promotion has been restricted and minimized.

There is nothing wrong with celebrity ads — as long as there is truth in advertising. And if the huge cost is not paid for by public funds.

Being a celebrity has its ups and downs. The famous person enjoys many perks. But there is price for that special status.

• VIP treatment. He/she saves time, effort, and money. He/she does not have to stand in line at the ticket office. Choice seats are offered at a fully booked restaurant. There are freebies from couture designers, shops, hotels, and airlines.

• 2) Social cachet. This is a permanent or temporary status. Invitations to high-profile events and concerts, exclusive circle clubs.

• Ego-massage. Fame produces an addictive adrenaline rush for the narcissist. He/she loves to see and hear himself/herself in the news. The applause is the crowds provides unlimited ego-boosting.

• Hero-worship. The fans, try to please the star. Sycophants fawn and flatter the politician. Lobbyists and vested interest groups offer gifts in exchange for future favors.

• Life in a goldfish bowl. The lack of privacy. The star enjoys attention and adoration. However, the intrusion and invasion of privacy can be distressing and painful. Stalkers have shot stars (John Lennon) and attempted to assassinate the Pope (St. John Paul II) and US president (Ronald Reagan).

• Public ownership. The celebrity’s personal life cases to be his/her own. He/she becomes material for public consumption and sensational scoops. It is transparency taken to extremes.

They become fair game for paparazzi and enemies. Any story (tawdry, sleazy, true or false) that will sell the tabloid and magazine is printed.

Despite protestations to the contrary, a number of play-hard-to-get celebrities may actually enjoy the attention. They thrive on and bask in publicity.

A few truly abhor attention. Greta Garbo once said that famous line: “I want to be alone.” She actually said: “I want to be left alone.”

Rumor and gossip stoke the fire. Star handlers and pin masters contrive elaborate scandals, fabricate tall takes and cultivate a controversial image. The better to get mileage.

In the end, the celebrity can be lonely. He/she loses touch and does not know where to draw the line between fact and fiction. And there are too many fair weather friends.

Andy Warhol once declared, “In the future, everyone will be famous for 15 minutes.”

The brilliant star grows old and fame wanes. The public shifts its gaze to a new face, a new name. The cycle begins all over again.

 

Maria Victoria Rufino is an artist, writer and businesswoman. She is president and executive producer of Maverick Productions.

mavrufino@gmail.com

PHL Agriculture: No longer a laggard?

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What to see this week

5 films to see on the week of January 26-February 2, 2018

Maze Runner: The Death Cure
In the saga’s epic finale, Thomas and his group of escaped Gladers break into the legendary Last City, a WCKD-controlled labyrinth. Gladers who make it out alive will get answers to questions they have been seeking since their arrival. Directed by Wes Ball, it stars Dylan O’Brien, Kaya Scodelario, Thomas Sangster, Rosa Salazar, Dexter Darden, and Giancarlo Esposito. Variety’s Andrew Barker writes, “The Maze Runner was Ball’s first film, and his ability to craft comprehensible set pieces has steadily improved throughout the trilogy.”

MTRCB Rating: PG

Braven
Expecting a quiet weekend, Joe and his father discover that drug traffickers have hidden a stash of heroin in their hunting cabin. As criminals, father and son fight for survival. Directed by Lin Oeding, the film stars Jason Momoa, Garret Dillahunt, Jill Wagner, Stephen Lang, Brendan Fletcher, and Zahn McClarnon. A review from Movie Nation states, “It’s a formulaic thriller that underlines its foreshadowing and pins its hopes on big action beats — brawls, snowy chases, shoot-outs and archery.”

MTRCB Rating: R-13

Mr. and Mrs. Cruz
Raffy and Gela cross each other’s paths having traveled to Palawan in order to spend time alone. Sigrid Andrea Bernardo (Kita Kita) directs this Viva Films/IdeaFirst Co. production which stars Ryza Cenon and JC Santos.

MTRCB Rating: R-13

Fallen Not Forgotten: The Untold Story of The Gallant SAF 44
Shown exclusively in SM cinemas, this documentary by Adrian Belic and Sally Jo Bellosillo focuses the 13 members of the Special Action Forces who were tasked to capture the terrorist Zulkifli bin Hir — better known as Marwan — in Mamasapano, Maguindanao.

MTRCB Rating: R-13

The Promise
Twenty years after reneging on a suicide pact with her best friend, Boum and her 15-year-old daughter are haunted by a vengeful ghost. Directed by Sophon Sakdaphisit, the film stars Numthip Jongrachatawiboon and Apichaya Thongkham. South China Morning Post’s James March calls the film “formulaic yet effective.”

MTRCB Rating: R-13

Who should personally handle employee dismissals?

Our HR department used to take the lead in handling personally all disciplinary cases in our organization. Now that we have a new HR head, major changes had been introduced including a new policy requiring all line supervisors and managers to personally handle all offenses that merit reprimand and suspension up to dismissal. Which is correct — the old or new policy? — Decoding

Soviet Premier Nikita Khrushchev and American President John Kennedy were having a vigorous exchange. Finally, Kennedy asked Khrushchev — “Do you ever admit a mistake?” The Premier responded, “Certainly, I do. In a speech before the 20th Communist Party Congress, I admitted all of Stalin’s mistakes.”

To answer your question, let me give you my personal dictum: “Whoever has the authority and final decision to hire has the same authority and responsibility to discipline and fire erring workers.” The role of HR is basically a staff function with the basic responsibility of giving professional advice to line management executives.

Therefore, it was a mistake for the former HR head to personally handle the line function of other departments, even when it was allowed by those concerned. Of course, the exception to this is when an HR staff violates a company rule, and therefore must be disciplined by the HR head or anyone representing him.

In Management 101, HR as a staff authority has a special task that includes studying and sharing of industry best practices, giving advice, and making recommendations to line executives within the same organization. HR, like the finance department, will have the same staff authority to coordinate with line executives on which accounting forms to use to facilitate the release of budget and eventual purchase of certain equipment or services.

Even without this theoretical underpinning, it is unthinkable, unwise, if not impractical for an HR department to discipline all erring workers, while their line bosses whistle their way around until the next potentially problematic worker. Let me tell you this once again. Problem employees and employees with problems are created by problem managers.

If only these line executives are qualified to perform their job of personally nurturing and motivating their workers, like a green thumb gardener (as opposed to a lumberjack), then there should be no disciplinary issue that reaches HR.

Sometimes there are line managers who do not want to handle such difficult tasks as giving reprimands, much less suspending employees or dismissing them. But they don’t have much choice if they want to remain part of the management team. If this happens, HR may hold the hand of the concerned line executive, but the latter must still play an active and strategic role.

To make everything run smoothly, HR and the line department must study the applicable policy, rediscover established precedents (or exceptions) and more importantly to observe both substantive and procedural due process. HR may be present to support the line executive in issuing the “Notice to Explain” (NTE) and guide both parties (the boss and erring worker) on the proper procedure.

HR’s presence in the disciplinary process may be helpful, if only to ensure that the worker is given his full day in court. Therefore, HR must remain objective and neutral in the entire process to secure the trust of the worker.

Remember that the higher purpose of employee discipline is to correct unwarranted behavior and therefore must follow the following approaches, many of which are not be included in the Company’s Code of Conduct:

One, observe due process whoever is involved. This is very basic and no staff and line authority should ignore it. Most codes of conduct have the proper procedure but it is better to update them to reflect the latest labor jurisprudence. Try to use the term “Code of Conduct” rather than the much-hated “Code of Discipline.”

Two, hold the session in a private room.  Don’t hold the meeting inside the room of the boss or HR head. It’s better if the meeting is held in a board room, a neutral environment for both parties. Such a location means other employees will not have a chance to hear the discussion. It also gives everyone an opportunity for uninterrupted discussion, free from unwanted telephone calls or intrusions.

Three, be specific about the offense committed. And do this in writing. If the charge is too vague or general, the worker may later use it as a defense to claim that management has no case against him. Being categorical and specific includes answering who, what, where, when, why and how, among other things.

Four, calm down if the worker gets emotional. Wait until he calms down before proceeding to issue the Notice to Explain. This doesn’t mean, however, that you have to endure more than 20 minutes of discourse against management or discussing irrelevant issues. If the situation becomes intense, try settling things down by having a short break.

Last, limit the number of persons inside the room. Depending on the nature of the offense, gravity of the penalty to be imposed, and the personality of the erring worker, it is advisable that both HR head or his representative and the concerned line executive to personally issue the NTE. It is for the protection of both line and staff authority as the situation could be potentially dangerous for management.

Join our Feb. 15 public seminar on “Manager’s Metrics to Help Measure Success” at Discovery Primea Makati. Use Promo Code BW12618 to secure the P7,900 per person early-bird rate. For further details, call (02) 846-8951 or 0915-406-3039 or send e-mail to inquiry@kairos.com.ph.

 elbonomics@gmail.com

ADB annual meeting in May to tackle lagging economies

THE 51ST Annual Meeting of the Asian Development Bank (ADB) in Manila this year will focus on economies left behind amid Asia’s rapid expansion.

“As you know in the last 50 years the ADB has been very successful in improving the standard of living among its members. However, when you have successes like that you create new situations that have to be addressed,” Finance Secretary and Chairman of the ADB Board of Governors Carlos G. Dominguez III said in a statement.

Mr. Dominguez said that the Bank has been successful in improving living standards across the Asia Pacific, but now has to contend with new problems arising from the region’s economic resurgence.

“When the tide rises, all boats rise. Unfortunately, in economies, that doesn’t happen all the time. There are some communities that are not as progressive and vital as other sectors,” he said.

The Philippines will host the 51st Annual Meeting of the ADB Board of Governors in Manila on May 3-6 with the focus on “Linking People and Economies for Inclusive Development.” 

Mr. Dominguez said in his closing remarks in last year’s meeting that the regional lender should “begin a process of reinvention” so that its programs can realign to meet new global realities.

These new realities, he said, include the shifting of the balance of economic power to Asia, the rising economic nationalism and hostility to globalization in the US and Europe, and the emergence of new multilateral lending institutions such as the Asian Infrastructure Investment Bank.

The 2018 agenda will take off from last year’s annual meeting in Yokohoma, Japan, where the Board of Governors committed to strengthen efforts to develop infrastructure, collectively strengthen the region’s resilience amid growing global economic uncertainties now that Asia is expected to lead global growth, according to Mr. Dominguez.

“The economic balance of power has shifted. Asia is now expected to lead global growth. We cannot be content to simply track the development experience of the West,” he said.

He also expressed caution over emerging protectionist and anti-globalization policies in the US and European economies.

As for the Philippines, the key elements of its inclusive growth strategy are a “massive infrastructure program to bring us up to par with the region and a comprehensive tax reform package that will support robust economic investments in the country’s future,” he said.

“The first element is indispensable. For decades, the country lagged behind its neighbors in economic investments as we grappled with a debt overhang. We have to close the infra gap to achieve investment-led growth and evolve a truly inclusive economy,” he said. — Elijah Joseph C. Tubayan

How PSEi member stocks performed — January 25, 2018

Here’s a quick glance at how PSEi stocks fared on Thursday, January 25, 2018.

Nation at a Glance — (01/26/18)

News stories from across the nation. Visit www.bworldonline.com (section: The Nation) to read more national and regional news from the Philippines.

Positive impact finance

Developed by a group of banking and investor members of the United Nations Environment Programme Financial Institutions (UNEP-FI), the Positive Impact  Principles are a set of guidelines to promote the development of positive impact business and finance which  contribute to the achievement of sustainable development and, in particular, the Sustainable Development Goals (SDG).

The principles, making the shift to a new business paradigm and form of interaction to finance the SDGs, was introduced to members in the Asia Pacific region during the UNEP-FI Regional Roundtable in Tokyo, Japan last month which this writer was privileged to attend.

In brief, the development of a dedicated set of principles serves to guide financiers and investors in their efforts to increase their positive impact on the economy, society and the environment.    

It is a set of guidelines for the principal players. Financiers shall be able to identify, promote and communicate about positive impact finance across their portfolios. Investors and donors are enjoined to holistically evaluate the impact of their investments and direct their investment choices and engagements accordingly. Auditors and raters shall provide financiers, investors and their stakeholders with the verification, certification and rating services needed to promote the development of positive impact finance.

The principles have four components: definition, frameworks, transparency and assessment. By providing a common language to the finance community and for a broader set of stakeholders, the principles are expected to constitute an important step in unlocking the  opportunities in SDGs and overcoming the funding gap for sustainable development.

Principle One defines positive impact finance as that which serves to finance positive impact business. It is that which serves to deliver a positive contribution to one or more of the three pillars of sustainable development (economic, environmental and social) once any potential negative impact to any of the pillars have been identified and investigated.

Principle Two, on frameworks, exhorts entities (financial or non-financial) to have adequate process, methodologies and tools to identify and monitor the positive impact of the activities, projects, programmes, and/or entities financed or invested in.

Principle Three asks the entities to provide transparency and disclosure on the following: (1) The activities, projects, programs, and/or entities financed considered and intended positive impact; (2) The processes they have in place to determine eligibility, and to monitor and to verify impacts; and

(3) The impact achieved by the activities, projects, and programs, and the entities financed. The intended use of funds released via financial instruments and their intended contribution should be clearly marked on the corresponding documentation.

Finally, Principle Four recommends that assessment be based on the actual impact achieved. The assessment can be internally processed, i.e. for internal monitoring and evaluation purposes, or undertaken by qualified third parties (e.g. auditing companies, research-providers and rating agencies), for certification and/or rating purposes.

The basic rationale for these principles is the realization that it is not enough to just change gears towards forward-looking risk management approaches like scenario analysis and stress testing approaches.

Whereas previously the tack was to mitigate the risks, this time it is to  identify clear solutions. The challenge is to focus on growing the pool of finance available to deliver positive impact.

As The Economist aptly puts it, “cutting emission will not be enough to keep global warming in check. Greenhouse gasses must also be scrubbed from the air.” This is an example of taking clear actions to achieve a positive effect, not just to ensure that actions taken will have less negative outcomes.

The principles are designed to grow the financing of sustainable development solutions by making the finance industry a catalyst for change. The importance of clearly setting measurable targets ensures that outcomes will stand validation and scrutiny. It is consistent with the mindset that what we cannot measure, we cannot control. It is a pro-active approach that puts substance to what UNEP-FI aims about changing finance by adopting a precautionary approach to environment and social issues.

Benel D. Lagua is Executive Vice-President at the Development Bank of the Philippines. He is an active FINEX member and a long time advocate of risk-based lending for SMEs.

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