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A row of new Porsche Taycans await to depart from Sevilla. — PHOTO BY KAP MACEDA AGUILA

We drive the extensively refreshed Porsche Taycan in Spain

THERE’S NOTHING quite like experiencing launch control on the new Porsche Taycan Turbo. When you release the brake pedal while flooring the throttle, you are catapulted — nay, rocketed forward — nailed to the seatback as the vehicle rapidly acquires pace. You don’t even have enough time to thank God for the headrest that cradles your skull and keeps you from getting whiplash.

You could very well say I left my senses behind me as the battery electric sports car sprinted from a standstill to 100kph in less than three seconds. The official rate, says Porsche, is 2.4 seconds — a hefty 0.4 second quicker than the Taycan it replaces. And on the Porsche Turbo GT with Weissach Package that I’m blessed to be muscling around the track, it’s an even sprightlier 2.1 seconds. The maximum power on this beauty is downright beastly: 760kW or 1,019hp (making it the most powerful series-production Porsche of all time). And this yin-yang quality extends to the silent powertrain and tight chassis that lull you into thinking you are not speeding.

Even if the tarmac of the beautiful Circuito Monteblanco in La Palma del Condado, Spain was a bit wet on account of a spate of showers, the specialized Pirellis on the Taycan kept it steady and planted at speed. The proving ground is a surely worthy experience and showcase of what makes the Taycan so different, so improved from its predecessor. Though a midcycle refresh, the new Taycan is already head and shoulders above the one it replaces — in one aspect, most literally.

Let’s get to that one first. Cognizant of the difficulty of getting into sports cars (ah, the problems we have), Porsche has made tweaks so that when you unlock the vehicle to get in, the vehicle will rise up to make ingress a bit easier; same thing when you are disembarking from it.

There are definitely touches like this here and there that will make even existing Taycan owners take another look — and even consider upgrading.

Among the plethora of niceties, none are more important than bumps in power, range, acceleration, stability, and even charging times.

At the track’s media lounge, I spoke exclusively to Porsche’s spokesperson for the Panamera and Taycan lines, Mayk Wienkötter. I asked for the highlights of this significant rehash. “First of all, we have a bigger battery,” he replied. “That helps, of course, but we really retouched and reworked every part of the car. Everything has been made more efficient. We have a new rear motor, we have new pulse inverter. We even have tires and wheels that are more aerodynamic, and therefore more efficient. And this all adds up. It’s a lot of the little things that we implemented into the new Taycan, and these help to increase the range by up to 35%.”

The previous evening, Porsche held a presentation at the impressive Pabellón de la Navegación for attendees of its New Taycan International Media Drive. This museum in Seville is “devoted to seas and oceans,” underscoring the significance of Seville (or Sevilla) as a fluvial city.

Porsche Taycan Electric Powertrain Director Klaus Rechberger helped to establish context as to what the Stuttgart-headquartered brand prioritized in the new Taycan in terms of share in development cost. Leading the, well, charge is work on efficiency (29%), performance (25%), design and charging (16% each), infotainment (11%), and comfort (3%). It should be no surprise that massive gains were realized in the major areas of spending.

Aside from shaving milliseconds off its standstill-to-100kph time (in the case of the base Taycan, it’s now 4.8 seconds from 5.4 ticks), range has grown significantly. By WLTP standards, the new Taycan can realize up to 678 kilometers on a fully charged battery — up by 35% versus the 503 kilometers of its predecessor. The Taycan Turbo S musters 630 kilometers versus the 467 kilometers (plus 34%) of the older version. The aforementioned batteries have been swapped for higher-capacity ones — 300kW from 240kw in the new Taycan 2WD; 700kW from 560kW in the new Taycan Turbo S. Drilling down further, the improved range reflects breakthroughs in four areas of improvement: battery capacity, increased drivetrain efficiency, optimized drive and recuperation strategy, and optimization of the whole vehicle (mass, aerodynamics, rolling resistance).

The battery gets new cell chemistry to promise high energy density and performance. Aside from enhanced capacity (plus 12%), it accepts greater maximum charge current (plus 20%), boasts a lower starting temperature for fast charging (now at 15 degrees Centigrade from 35 degrees), higher maximum current for launch control (plus 20%), lower weight (less 9kg), and greater energy density (plus 13%).

Looking back, the Taycan, when it was first rolled out to the market in 2019, was probably a bit of a gamble for Porsche, particularly in view of purists who believe in the sanctity of the internal combustion engine (ICE). I posed this very question to Mr. Wienkötter.

“It’s very simple,” he began. “The Taycan is a true Porsche. It looks like a Porsche, drives like a Porsche, handles like a Porsche. It even smells like a Porsche. If you look at the seating position, for instance, it’s very similar to the 911, although it’s a four-seater and a four-door version.”

Insisted the executive: “Everything feels very much Porsche, and that was really crucial for us to create — despite the drivetrain — a car that really resonates with the existing Porsche customers, that they feel at home when they get into the car. The steering feel will be the same, the way the car turns, and the acceleration feel, it should be very similar, and that’s what we achieved with the Taycan, and that’s why it’s such a great success.”

Mr. Wienkötter added that Porsche has produced “almost 150,000” units of the model. If you take into account that it is, after all, a luxury vehicle — and a BEV at that — then it “tells the success story of the Taycan from day one.”

Still, Porsche designers and engineers were cognizant of the misgivings drivers and pundits had about the original vehicle — mainly pertaining to comparatively limited range and efficiency. “We felt that the efficiency needed to be improved, even the performance. So now, the car is quicker, charges more quickly, and goes further. The whole package is now even more complete,” declared the executive.

As for the demographic of Taycan buyers, Mr. Wienkötter reported, “We’ve seen it all. So, 50% are existing customers, 50% are new to the brand, and we even saw some people buy their very first EV through Porsche. So the mix is really, really diverse, which is also, again, part of the success, because the car resonates with so many people from so many different target groups, that it appeals to so many different people.”

This attractiveness for various buyer profiles is also manifested in the diversity of choices in the Taycan — carried over into the refreshed version. There are a staggering 14 different Taycan models — broken down into the three main body types: the sports sedan, the Cross Turismo, and Sport Turismo.

“If a model is not performing, there would be no reason to continue it in through the next generation. We didn’t lose a single model. You can really choose by budget, by design, or by power. It’s really your choice,” concluded Mr. Wienkötter.

A stint on the track was a welcome one to test the limits of the electric vehicle that is truly a Porsche. Incidentally, the Taycan Turbo GT with Weissach Package posted the fastest-ever time for an electric series-production car at the Laguna Seca and the Nürburgring Nordschleife — additionally becoming the fastest four-door of any powertrain type to make a round of the latter.

However, making our way to and from La Palma del Condado and Sevilla was something else. Flying past verdant meadows freshly kissed by rain, beautifully undulating roads in the countryside, and even blissfully feeding livestock, the new Porsche Taycan felt compliant and at home, almost blending into the scenery even as it rushed past in a blur. There was a whole lot of silence as well, almost like the Taycan was respectful and mindful not to disturb the peaceful, living tableau of this slice of paradise.

How PSEi member stocks performed — September 20, 2024

Here’s a quick glance at how PSEi stocks fared on Friday, September 20, 2024.


PHL shares may rally as Fed cut boosts sentiment

BW FILE PHOTO

PHILIPPINE SHARES may continue to climb this week amid positive market sentiment following the US Federal Reserve’s decision to start its rate cut cycle.

On Friday, the bellwether Philippine Stock Exchange index (PSEi) rose by 0.69% or 50.16 points to end at 7,252.32, while the broader all shares index went up by 0.61% or 23.94 points to close at 3,895.62.

Friday’s close was the PSEi’s best finish in more than two years or since it ended at 7,288.07 on March 7, 2022.

Week on week, the benchmark index surged by 3.27% or 229.47 points from its 7,022.85 close on Sept. 13, climbing for a third consecutive week.

“The Fed officially started its easing cycle with a supersized rate cut, sending global markets into a buying frenzy,” online brokerage firm 2TradeAsia.com said in a market note.

“The local market has been showing bullish momentum, rising for three straight weeks, with the latest one getting it past the 7,150 resistance level,” Philstocks Financial, Inc. Senior Research Analyst Japhet Louis O. Tantiangco said in a Viber message.

The Fed last week cut its policy rate by 50 basis points (bps) to 4.75%-5%, marking its first easing move since March 2020.

Interest rate futures contracts now price in about a 30% chance that the Fed will deliver a second cut of the same size in November, Reuters reported. The market-based probability of a quarter-point rate cut in November is now about 70%, up from around 65% before the data.

For this week, Mr. Tantiangco said the Philippine stock market could extend its rally, although profit taking could ensue.

“The market may still end this week on a positive note as the dovish monetary policy outlook of the Bangko Sentral ng Pilipinas (BSP) and the Fed may continue to uphold optimism,” he said.

He placed the PSEi’s support at 7,150 and resistance at 7,400.

Analysts have said the start of the Fed’s easing cycle gives the BSP more space to cut its own benchmark interest rates further.

The Monetary Board on Aug. 15 reduced its policy rate by 25 bps to 6.25% from the over 17-year high of 6.5%. BSP Governor Eli M. Remolona, Jr. has said the central bank may deliver another 25-bp cut in the fourth quarter. The Monetary Board’s remaining meetings this year are scheduled for Oct. 17 and Dec. 19.

For his part, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort put the market’s immediate support at 7,000 and resistance at 7,338.66-7,552.20.

“Mostly weaker US economic data recently could increase the odds of future Fed rate cuts in the coming months that could be matched locally,” Mr. Ricafort said in an e-mail.

2TradeAsia.com placed the PSEi’s immediate support at 7,100 and resistance at 7,500. “The local bourse has successfully hit the 7,200 level for the first time since 2022, this time backed by a clearer path towards lower rates up to 2026, tame inflation, and more grounded forward valuations.” — R.M.D. Ochave with Reuters

Peso may move sideways vs dollar as market awaits PCE price index data

PHILSTAR FILE PHOTO

THE PESO could trade sideways against the dollar this week as the market awaits the release of the August US personal consumption expenditure (PCE) price index data for hints on the Federal Reserve’s next policy move.

The local unit closed at P55.69 per dollar on Friday, weakening by eight centavos from its P55.61 finish on Thursday, Bankers Association of the Philippines data showed.

Still, week on week, the peso surged by 30.5 centavos from its P55.995 finish on Sept. 13.

The peso weakened against the dollar on Friday after the Bangko Sentral ng Pilipinas (BSP) announced a surprise cut in banks’ reverse requirement ratios (RRR), Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a Viber message.

The BSP on Friday said it will reduce the RRR for universal and commercial banks and nonbank financial institutions with quasi-banking functions by 250 basis points (bps) to 7% effective on Oct. 25.

It will also cut the RRR for digital banks by 200 bps to 4%, while the ratio for thrift lenders will be reduced by 100 bps to 1%. Rural and cooperative banks’ RRR will likewise go down by 100 bps to 0%.

“The US dollar gained some strength due to positive US jobs data, but the dollar-peso pair traded with caution amid a broader risk-on rally. This trend was influenced by offshore central bank decisions and the BSP’s announcement of an RRR cut. The Indonesian rupiah outperformed other Asian currencies, while the Chinese yuan benefited from a stronger reference rate set by the People’s Bank of China,” Security Bank Corp. Chief Economist Robert Dan J. Roces added in a Viber message.

The dollar strengthened against the yen on Friday, hitting its highest level in two weeks, after the Bank of Japan (BoJ) left interest rates unchanged and indicated that it was not in a hurry to hike them again, Reuters reported.

The BoJ could afford to spend time eyeing the fallout from global economic uncertainties, Governor Kazuo Ueda said in a press conference following the central bank’s move, adding that its monetary policy decision will be based on “economic, price and financial developments.” The BoJ kept rates steady at 0.25%, a move that was widely expected.

The dollar rose as high as 144.50 yen, reaching its highest level since early September. It was last up 0.92% at 143.92.

The dollar has traded in a choppy fashion since the Fed kicked off its monetary policy easing cycle. The US dollar index, which measures the greenback against major currencies, gained slightly to 100.75 and just above a one-year low.

Markets imply nearly a 49% chance the Fed will deliver another 50-bp rate cut in November and have priced in 74.8 bps of cuts by the end of this year. The Fed’s policy rate is expected by the end of 2025 to be at 2.85%, which is now thought to be the Fed’s estimate of the neutral rate.

For this week, Mr. Roces said the US PCE data, the Fed’s preferred inflation gauge, will be the main driver of foreign exchange trading. August US PCE price index data will be released on Sept. 27 (Friday).

Investors are looking for data to support expectations that the economy is navigating a “soft landing,” during which inflation moderates without badly hurting growth.

Mr. Ricafort sees the peso ranging from P55.60 to P55.80 per dollar on Monday. — AMCS with Reuters

Rules currently favor imports in 2-wheel EV market, Honda says

GLOBAL.HONDA

HONDA Philippines, Inc. said imports are currently a better option than local production in the two-wheel electric vehicle (EV) market, based on the rules now in place.

“The Philippine regulations call for zero duty, which is good for imports. So it is better to import because if we invest in production, that will cost more than importing. So that’s why we are now choosing to import,” Sayaka Arai, president of Honda Philippines, told reporters last week.

The company produces EV motorcycles in China, Indonesia, India, and Thailand.

“However, if the government’s laws and regulations change to benefit investment in local production, we want to consider producing this kind of electric motorcycle for the domestic market,” she added.

On June 20, President Ferdinand R. Marcos, Jr. signed Executive Order (EO) 62, which expanded the reduced Most Favored Nation tariff rates to other battery EVs, hybrid EVs (HEVs), plug-in hybrid EVs (PHEVs), and certain parts and components.

EO 62 also covered e-motorcycles, e-bicycles, nickel metal hydride accumulator batteries, e-tricycles and quadricycles, HEVs, and PHEV jeepneys or buses.

Ms. Arai said Indonesia provides incentives to manufacturers if they meet product localization targets.

“If the localization ratio is higher than that range, the company can get the incentive (when selling) electric vehicles,” she added.

A high level of localization will push manufacturers towards local production.

“That means more supply needs to be available in the country, which also means more employment in the country,” she said.

“That is accelerating the industrial wave in Indonesia for EVs,” she added.

She noted that EVs in the Philippines are still in the early stages of development following the adoption of the zero-import duty policy.

“The Philippines is only at the starting level for electric motorcycles. It’s just importing and expanding the market,” she said.

“But for the future, we would like to ask the government to consider the incentives for domestic manufacturing,” she added.

She said that the motorcycle market is around six million units in Indonesia; the Philippine one is two million.

Last week, Honda unveiled its first battery-powered motorcycle, the EM1 e: which has a suggested retail price of P155,400.

“Because the EV market is just at the starting level, we are targeting not so big numbers like 1,000 or 2,000 units,” she said.

In the previous financial year, Honda produced 750,000 motorcycles in its factory. Honda’s financial year runs from April to March.

“Two years before that, that was just 200,000. So our production is really increasing,” she said.

She added that the main driver for the increasing production is the Honda’s Click125 model, which is popular in the Philippines, and is being exported to New Zealand. — Justine Irish D. Tabile

FPIP Batangas commercial center expected to open by early 2026

FIRST PHILIPPINE Industrial Park is a joint venture between the local conglomerate First Philippine Holdings and the Japanese conglomerate Sumitomo Corp. — FPIP.COM

FIRST PHILIPPINE Industrial Park (FPIP) is building a three-story mixed-use hub in Santo Tomas, Batangas, which is expected to boost employment at the economic zone from the current staffing level of over 70,000.

FPIP Plaza will offer 15,000 square meters of space for retailers, restaurants, service centers, corporate offices, and government offices upon completion.

Targeted for launch by the first quarter of 2026, FPIP’s development partners are construction firm First Balfour and architectural firm Aidea.

FPIP Chief Commercial Officer and First Balfour Deputy Chief Operating Officer Jose Valentin A. Pantangco said that the plaza is meant to serve as a gathering place for the surrounding barangays.

“It will continue to support the mission of FPIP — to create jobs, strengthen industry, and modernize the two cities of Sto. Tomas and Tanauan, and make Batangas the prime industrial corridor of the Philippines,” Mr. Pantangco said in a statement over the weekend.

Batangas Rep. Ma. Theresa V. Collantes welcomed the project and said it will help boost business within the province.

“I can already see the impending growth of the local economy, the creation of even more work opportunities, the flourishing of surrounding businesses, the placement of more investment, and the strengthening of the position of FPIP and its partners,” Ms. Collantes said.

FPIP is a Philippine Economic Zone Authority-registered economic zone that hosts over 150 locators, which include Collins Aerospace, the Philippine Manufacturing Co. unit of Murata, Inc., and Dyson.

The construction of the mixed-use project officially broke ground on Sept. 10, First Balfour said in a statement. — Justine Irish D. Tabile

PHL climate financing hits record $3.13B in 2023

PHILIPPINE STAR/ MICHAEL VARCAS

THE PHILIPPINES obtained a record $3.13 billion (P174.23 billion) from multilateral lenders to fund projects aimed at mitigating the effects of climate change, the European Investment Bank (EIB) said.

The 2023 total was 7.67% higher than the $2.91 billion obtained in 2022, according to the EIB’s 2023 Joint Report on Multilateral Development Banks’ (MDB) Climate Finance.

Among 126 countries, the Philippines was 11th highest recipient of climate finance, behind France ($7.38 billion), Spain ($6.98 billion), Italy ($6.67 billion), India ($6.5 billion), Poland ($5.81 billion), and Germany ($5.66 billion).

Also ahead of the Philippines were Turkey ($5.3 billion), Indonesia ($3.88 billion), Bangladesh ($3.72 billion), and Brazil ($3.61 billion).

Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said this was “consistent with the fact that the Philippines has always been one of the hardest hit by calamity damage worldwide, including those related to climate change or extreme weather conditions.”

“(The) level of assistance to the country is commensurate to this fact, especially related to increasing preparedness of the country to face these climate-change related calamities to mitigate loss to property and lives,” he said via Viber.

For the 16th straight year, the Philippines was ranked the most disaster-prone country in the world with a risk score of 46.91, according to the 2023 World Risk Index.

In 2023, multilateral development banks (MDBs) allocated $125 billion for climate mitigation and adaptation projects worldwide, almost double their commitment to allocate $65 billion yearly until 2025.

The European Union received the highest climate financing from MDBs last year at $46.31 billion, followed by Sub-Saharan Africa ($17.24 billion), and East Asia and the Pacific ($11.12 billion), according to the report.

“We welcome the fact that MDBs provided record climate finance last year — every dollar of which makes a difference in helping to cut carbon emissions or preparing people and infrastructure for the worst impacts of climate change, much of which we must recognize is already baked in,” Bruno Carrasco, director general for Sustainable Development and Climate Change at the Asian Development Bank, said in a statement.

Despite this, Mr. Carrasco noted the still “large financing gap, and ADB will continue to work closely with other MDBs — and in its own right — to get as much financing as possible to our developing member countries.”

Low and middle-income countries, which include the Philippines, received $74.4 billion in 2023. Some 67% or $50 billion was allocated to climate change mitigation, while 33% or $24.7 billion was for adaptation.

Meanwhile, high-income economies obtained $50.3 billion from MDBs, with 94% or $47.3 billion going to mitigation projects and 6% or $3 billion going to adaptation projects.

The joint report combined climate funding extended by the EIB, ADB, African Development Bank (AfDB), Asian Infrastructure Investment Bank (AIIB), Council of Europe Development Bank (CEB), European Bank for Reconstruction and Development (EBRD), the EIB, Inter-American Development Bank (IDB), Islamic Development Bank (IsDB), New Development Bank (NDB) and the World Bank Group (WBG). — Beatriz Marie D. Cruz

Navigating change: 10 key shifts shaping sustainability in the Philippines

(Second of two parts)

IN BRIEF:

• The SEC’s new sustainability reporting form aligns Philippine companies with global standards, enhancing climate risk transparency.

• The full adoption of IFRS S1 and S2 by 2027 will improve the Philippines’ attractiveness to investors seeking reliable ESG data.

• Innovations in insurance, electric vehicles, green steel, renewable energy and battery storage, and aviation fuel are creating new sustainable investment opportunities.

The Philippines is rapidly embracing a future where sustainability is not just a buzzword but a core aspect of business and economic strategy. Building on the regulatory reforms and market dynamics discussed in the first part of this series, the country is laying the groundwork for a transformative shift towards a more sustainable and resilient economy.

The first part of this article discussed the first five key shifts that are shaping the sustainability landscape in the Philippines, focusing on the implications for businesses and the opportunities for investors in this emerging low-carbon economy. 

This second article examines the key shifts that are influencing this green transition. It will discuss the roadmap for IFRS S1 and S2 adoption, the severity of rising climate-related loss and damage, rising growth in electric vehicle (EV) adoption, emergence of green steel in construction, decarbonization of the aviation industry, and the innovative approaches and opportunities that are emerging for businesses ready to adapt and thrive in this new landscape.

ROADMAP FOR IFRS S1 AND S2 ADOPTION
The Philippine Sustainability Reporting Committee has proposed a roadmap for the adoption of IFRS S1 and S2, with a transition phase starting in 2025 and full adoption expected by 2027, which was approved by the Philippine Financial and Sustainability Reporting Standards Council (FSRSC) and for approval by the Board of Accountancy. This phased approach allows companies to gradually align their reporting processes with international standards, improving transparency and comparability across the market. As more companies adopt these standards, the Philippines is set to become increasingly attractive to global investors seeking consistent and reliable ESG data, which is crucial for sustainable investment portfolios.

RISING CLIMATE-RELATED LOSS AND DAMAGE
The increasing severity of climate-related loss and damage in the Philippines has led the insurance sector to re-evaluate its risk models. Consequently, premiums for natural catastrophe insurance products are expected to rise, potentially widening the insurance coverage gap. However, businesses that proactively assess facility-level climate risks can better manage these costs. Additionally, this scenario presents an opportunity for insurance companies to develop innovative products that address the unique risks posed by climate change in the Philippines, thereby safeguarding businesses and communities.

GROWTH IN ELECTRIC VEHICLE (EV) ADOPTION
EV adoption in the Philippines is gaining significant momentum, driven by investments in charging infrastructure and partnerships with global EV manufacturers. This trend creates investment opportunities in EV technology, infrastructure, and related services, catering to the growing demand for green mobility solutions in the region.

EMERGENCE OF GREEN STEEL IN CONSTRUCTION
The construction sector in the Philippines is increasingly turning to green steel to reduce scope 3 emissions. This shift is driven by the need to meet sustainability-linked bond requirements and access capital tied to ESG performance. Green steel, which is produced with significantly lower carbon emissions, is becoming a preferred material in real estate and infrastructure projects. This trend opens new avenues for steel manufacturers and suppliers who can meet the rising demand for sustainable construction materials, aligning with global efforts to reduce the carbon footprint of the construction industry.

The expansion of the electric vehicle (EV) and green steel industries is set to drive increased demand for renewable energy and battery storage. This surge presents significant opportunities for the renewable energy sector, supporting the Philippines’ goal of 50% renewable energy generation by 2040.

DECARBONIZATION OF THE AVIATION INDUSTRY
The Philippine aviation industry is actively pursuing decarbonization strategies, including the production of Sustainable Aviation Fuel (SAF) from biomass feedstock and the implementation of carbon offset initiatives. Government is considering policies that would set clear direction for the use of SAF by airlines, creating a significant investment opportunity in SAF production. Moreover, private-sector companies that rely on aviation services can contribute to this decarbonization effort by purchasing SAF certificates. This approach not only supports the aviation industry’s sustainability goals but also enables these companies to reduce their scope 3 emissions related to air travel and freight, thereby enhancing their overall sustainability profiles.

HOW BUSINESSES CAN ADAPT AND THRIVE
As the sustainability landscape in the Philippines rapidly evolves, businesses must adapt to remain competitive and resilient. The following strategic priorities are essential for navigating this transition:

TRANSFORMING MANAGEMENT SYSTEMS, ANALYTICAL APPROACHES
Traditional impact reporting, which often focuses on broad, enterprise-wide metrics, is no longer sufficient. The adoption of IFRS S1 and S2 entails a more detailed, data-driven analysis. Companies need to move beyond basic environmental metrics, employing advanced financial modeling to understand how climate and sustainability risks impact specific business segments. This granular analysis — tailored to the organization’s different business models — enables targeted risk mitigation and strategic planning, ensuring resilience against unique challenges.

For instance, a retail mall and an office building within the same company might face vastly different climate risks, requiring tailored risk management strategies. By embracing this level of detail, businesses can better identify vulnerabilities, develop targeted mitigation plans, and ultimately enhance their resilience to climate-related disruptions.

CLIMATE CONSIDERATIONS IN STRATEGIC PLANNING AND INNOVATION
Incorporating climate-adjusted financials into strategic planning not only helps businesses anticipate disruptions but also allows them to understand the broader shifts in their business ecosystem, driven by sustainability and climate imperatives. For example, as the finance community increasingly values sustainable investments, real estate companies are under pressure to adopt green building practices. This shift creates opportunities for manufacturers of construction materials to innovate and supply eco-friendly products, such as green steel or recycled materials.

By aligning their strategies with these market dynamics, companies can meet the evolving needs of key customers and capitalize on the growing demand for low-carbon solutions across various sectors. This ecosystem viewpoint ensures that businesses remain competitive and relevant in a market increasingly shaped by sustainability considerations.

ELEVATING CORPORATE GOVERNANCE AND OVERSIGHT
The transition to IFRS S1 and S2 significantly broadens the responsibilities of corporate boards, requiring a deep integration of climate and sustainability considerations into governance practices. Boards must ensure that climate-related risks are systematically managed, utilizing advanced tools like scenario analysis and stress testing to evaluate the resilience of the company’s strategies under various environmental scenarios.

Effective governance is also about recognizing and seizing new opportunities. Boards should actively engage in pursuing opportunities identified through strategic planning, such as expanding into emerging markets for sustainable products and technologies. By focusing on both risk management and opportunity capitalization, boards can ensure that the company is not only protected from potential disruptions but also well-positioned to thrive in a changing market.

To reinforce this strategic focus, it’s crucial that executive incentives are aligned with sustainability goals. Linking leadership compensation to the achievement of these objectives ensures that sustainability is embedded in the company’s core strategies and decision-making processes. This governance approach ensures compliance, strengthens the company’s reputation among stakeholders, and positions the business to capitalize on opportunities in the evolving sustainability landscape.

By focusing on these areas, businesses in the Philippines can navigate the evolving sustainability landscape and lead in building a resilient, sustainable future.

This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

 

Bonar A. Laureto is an assurance principal and leads Climate Solutions under the Sustainability Services team of SGV & Co.

Philippine men’s squad shares No. 36 after bowing to Georgia

PHILIPPINE REPRESENTATIVES to the 45th World Chess Olympiad in Budapest, Hungary — GM SUSAN POLGAR/GM JAYSON GONZALES/NCFP

BUDAPEST, Hungary — The Philippines saw its hope for a best finish nipped in the bud after falling to Georgia, 2.5-1.5, in the 10th and penultimate round of the 45th FIDE Chess Olympiad at the BOK Sports Hall here Saturday.

The Filipinos had all the chances to either pull off a match win or a match draw with Grandmaster Julio Catalino Sadorra and International Master Jan Emmanuel Garcia appearing to have gained the superior positions.

In the end, Mr. Sadorra settled for a 22-move draw with GM Mikheil Mchedlishvili of a Center Counter duel via repetition at board one as well as Mr. Garcia, who halved with the point in 39 moves with GM Levan Pantsulaia of an English encounter at board four.

GM-elect Daniel Quizon also drew his game with Nikolozi Kacharava in 35 moves of a Ruy Lopez that sent it in a 1.5-1.5 tie before IM Pau Bersamina missed out on his drawing chances and succumbed to GM Luka Paichadze in 43 moves of a Sicilian scrimmage at board three.

That sent the Filipinos, whose trip is bankrolled by the Philippine Sports Commission and backed by NCFP chief Butch Pichay, freefalling from a share of No. 15 to a group at No. 36 with 12 match points.

It also dealt a big blow to Mr. Sadorra’s chances of snaring an individual medal at board one as he sank from third to fourth, behind Indian Dommaraju Gukjesh, Uzbek Nodirbek Abdusattorov and former world champion and current No. 1 Magnus Carlsen of Norway. 

The University of Texas in Dallas coach though could still gatecrash into the top three assuming he wins his final round duel with super GM Adam Kozak of Hungary B and something catastrophic happens with players ahead of him.

WOMEN’S SECTION
In the women’s section, WGM Janelle Mae Frayna and wonder girl Ruelle Canino pulled off wins to lift the country to a 2.5-1.5 squeaker over Iceland and into a share of 36th spot with 12 points.

Ms. Frayna survived Woman FIDE Master Hallgerdur Thorsteindottir in 56 moves of an Alekhine Defense at board two while Ms. Canino flattened Gudrun Fanney Briem’s King’s Indian in 31 moves at board four.

Woman International Master Jan Jodilyn Fronda came back from the dead and drew with Idunn Helgadottir in 71 moves of a Sicilian at board three to help the Filipinas escape with the win.

The lone casualty for the Filipinas was WFM Shania Mae Mendoza, who lost to WGM Lenka Ptacnikova in 66 moves of a Four Knights Game at board one.

They will clash with Brazil in the final round with hopes of surpassing its 39th-place finish in Chennai, India two years back. — Joey Villar

Sun ready for Fever, Caitlin Clark in Game 1

CAITLIN CLARK — REUTERS

BEHIND rookie sensation Caitlin Clark’s record-setting campaign, the Indiana Fever embark on their first Women’s National Basketball Association (WNBA) playoffs appearance since 2016 when they begin a best-of-three series on Sunday against the host Connecticut Sun in Uncasville, Conn.

Indiana earned the No. 6 seed, going 9-5 after returning from the Olympic break. Clark, the No. 1 overall draft pick, tied Kelsey Mitchell with a team-best 19.2 points per game, while Clark’s 337 assists were a WNBA record.

The assist total gave Clark an average of 8.4 per game to go along with 5.7 rebounds and 1.3 steals.

“I feels night and day from where I started (the season),” Clark said. “I’m proud of myself in that regard. I think I’ve learned a lot… Once we kind of found our groove, I think my teammates have allowed me to be myself and that’s what has kind of brought us some success.”

Indiana had a scare in its regular-season finale Thursday vs. Washington, a 92-91 loss, when two-time All-Star and veteran Mitchell went down in the first quarter after a collision. Mitchell will be available for the playoffs and at full-strength, Fever coach Christie Sides said.

Part of Indiana’s late-season surge included an 84-80 victory over Connecticut on Aug. 28, their lone success in four games between the teams.

Five Fever players scored in double figures during the victory over the Sun, including Mitchell with a game-high 23, while Clark had 19 and Lexie Hull added 17. The trio shot a combined 11-of-25 (44.0 percent) from 3-point range.

Consistent 3-point shooting has been a key for Indiana throughout its run to the playoffs. The Fever finished the regular season hitting 35.6 percent from beyond the arc, third best in the league.

“I still feel there is a lot for us that we can achieve,” Clark said. “I have seen expectations that people have for us and that can get us further as an organization.”

Connecticut, the No. 3 seed in the playoffs, held opponents to 31.3 percent on 3-point attempts, second lowest in the WNBA, and boasted the league’s stingiest defensive yield at 73.6 points allowed per game.

The Sun also matched the Seattle Storm with a WNBA-high 16.3 turnovers forced per game, thanks in part to all four Connecticut starters averaging at least 1.2 steals per game.

The Sun spread their offensive production as well, led by Brionna Jones’ 18.2 points per game. Connecticut’s seven leading scorers average at least 10.5 per game for the season.

Marina Mabrey, a midseason addition in a trade from Chicago, is scoring 19.6 points per game in her time with the Sun, while primarily bringing a spark off the bench. She has averaged 14.9 points in her 16 games (three starts) for Connecticut.

“Indiana is playing really confident basketball,” Sun head coach Stephanie White said, according to the Hartford Courant. “…You’ve got to be able to give them different looks because they’re smart players. And when they get beat, they’re going to pick you apart. We’ve got to be consistent for 40 minutes.” — Reuters

Taurasi considers retirement as Mercury meet Lynx

WHAT could potentially be the final WNBA postseason run for Diana Taurasi begins on Sunday when the Phoenix Mercury visit the Minnesota Lynx in Minneapolis for Game 1 of the first round of the playoffs.

Taurasi, 42, hasn’t yet confirmed that this WNBA season is her last one, but the league’s all-time leading scorer and 11-time All-Star gave an emotional speech to Mercury fans on Thursday after Phoenix (19-21) lost to the Seattle Storm in the regular-season finale.

After her speech, Taurasi told reporters, “There’s still days where I’m like, I can still do this. I still want to play basketball. And then there’s the flip side, when there are days where I’m crawling out of bed, and that’s I guess a struggle you have when you get to this point in your career.

Phoenix is the only team Taurasi has played for in her 20 years in the WNBA, helping them win championships in 2007, 2009 and 2014. Fresh off securing her record sixth gold medal at the Summer Olympics, the task in front of her now is powering the Mercury on one more deep postseason run.

She’s third on the team in scoring this season behind Team USA teammates Kahleah Copper and Brittney Griner, averaging 14.9 points, 3.8 rebounds and 3.4 assists per game. Taurasi is the league’s all-time leader with 10,646 career points.

Up first on that road for seventh-seeded Phoenix is a game at second-seeded Minnesota (30-10) in a best-of-three series.

The Lynx, who won the WNBA Commissioner’s Cup earlier this season, have been powered by a career-best season from forward Napheesa Collier — who, like Taurasi, was a member of the Olympic squad and also starred at UConn. Collier, in her sixth WNBA season, is averaging 20.4 points, 9.7 rebounds and 3.4 assists per game while shooting 49.2 percent from the floor.

Were A’ja Wilson of the Las Vegas Aces not having a historically dominant season, Collier would be seen as a leading contender for the league MVP award.

Minnesota went 3-1 in the regular season against Phoenix, most recently notching an 89-76 win over the Mercury on Aug. 28 with McBride scoring a game-high 19 points. — Reuters

D-backs blank Brewers, boost wild-card chances

JOC PEDERSON and Ketel Marte each had a two-run homer and Merrill Kelly tossed five innings of two-hit ball as the visiting Arizona Diamondbacks kept pace in the National League wild-card chase, notching their third consecutive victory over the Milwaukee Brewers 5-0 on Saturday night.

Arizona (87-68) entered two games behind the San Diego Padres for the top spot in the NL wild-card race. The Padres played later Saturday. The Diamondbacks remained a game ahead of the Mets, who defeated Philadelphia 6-3 earlier Saturday.

Pederson’s two-run blast put the Diamondbacks up 2-0 in the first. Marte singled with one out and Pederson followed with his 23rd homer, sending an 0-1 pitch 397 feet to center.

Jose Herrera pushed the lead to 3-0 with his first career home run, a one-out solo shot to right in the fifth. — Reuters