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Building stronger defenses with smarter password management

By Ramprakash Ramamoorthy

THE PHILIPPINE government is taking action to strengthen its cybersecurity measures, such as enforcing appropriate regulations on digitalization. In recent news, the Philippine Computer Emergency Response Team has urged big organizations to establish an incident response team that can act quickly to mitigate damage in the event of a successful data breach.

One of the most common cybersecurity threats is weak, unchanged passwords. Why do we choose bad passwords? Are we faithful to our old passwords, keeping the same ones for years and years? Are we partial to certain accounts and their passwords?

People tend to prioritize financial accounts over retail, social media, and entertainment accounts because a breach of a mobile payment, online banking, or trading account could result in severe financial damage. It is crucial, however, to protect our personal information, no matter the type of account.

Why do people find it difficult to remember passwords, though?

First, we don’t use passwords daily. This is especially true after we save passwords on our mobile phones or PCs. Nonetheless, saving passwords on devices is not advisable as just about anyone could access the data without our permission.

Second, we have too many accounts and passwords. Now, it is nearly impossible not to have an account (and a corresponding password) for every service and app. There are accounts we access daily, while others we use weekly or every few months, and recalling all of these passwords off the top of our head is indeed a tall order unless we have an exceptional memory. Thus, many people use one common password for all their accounts, which makes things easy not just for them but unfortunately also for hackers.

Third, there are rules to follow when creating a password for an account. These include the password needing to have at least one special character and a length of at least eight characters. These strict password policies, recommended by the National Institute of Standards and Technology (NIST), are designed to reduce cybersecurity risks and protect data and networks. They play an important role, even though they can sometimes be a pain in the neck.

Fourth, we know we can change our passwords when needed. If the option to reset passwords did not exist, however, there would be chaos for both users and organizations.

Fifth, we do not save them in the right place. The practice of listing our passwords in a spreadsheet and storing it on our desktop is most assuredly not the best way to store our passwords!

If people are not doing so already, they must now begin to take their privacy more seriously. Based on the guidelines provided by NIST, we need to make certain that all of our online passwords meet these criteria: lengthy, unique, devoid of personal meaning, and updated whenever a breach is suspected.

The preferred length is 12 or more characters because it takes hackers 62 trillion times longer to crack a 12-character password than a six-character one. Meanwhile, unique passwords mean that if one is broken, other accounts are not compromised. As for not having personal meaning, this is so that social media profiles do not provide any clues as to what a person’s password might be. Following these criteria ensures the strength of our passwords, thus helping us secure our privacy and reduce the risk of a cyberattack.

At the organization level, it is essential and worth it to invest in an enterprise-grade password manager tool. This helps businesses and authorities control access to administrative passwords. It is vital to the Philippines’ cyber resilience that individuals not only make efforts to effectively protect their passwords but also that organizations lead the way in cybersecurity.

 

Ramprakash Ramamoorthy is the director of AI research, ManageEngine.

AirAsia Philippines to launch Nagoya route in October

NEWSROOM.AIRASIA.COM

AIRASIA PHILIPPINES is set to mount flights to Nagoya, Japan from Manila by end-October as part of the low-cost carrier’s international route expansion, it said on Wednesday.

The airline will start operating flights to Nagoya from Manila three times a week on Tuesdays, Thursdays, and Saturdays beginning Oct. 29, it said in a statement.

As part of the launch, AirAsia Philippines is offering a promotional P888 one-way base fare to Nagoya for flights booked via its AirAsia MOVE app until Aug. 11. The travel period for the promo fare is from Oct. 29 until March 29, 2025.

Nagoya will mark the company’s third route to Japan as AirAsia also operates flights to Tokyo (Narita) and Osaka.

“Japan is one of the strongest regional markets for AirAsia Philippines. In fact, we’ve already flown 210,000 guests for the first half of 2024,” Ricardo P. Isla, president and chief executive officer of AirAsia Philippines, said in a statement.

“We are confident we will double the 270,000 guests flown in 2023 with our competitive airfares, more services, better flight timings and world leading service,” he added.

AirAsia Philippines recorded 3.86 million passengers as of July 15, data provided by the company showed. In 2023, the airline logged a total of 6.6 million passengers.

In July, the airline said it also plans to capitalize on the recently approved increase in seat entitlements for flights between the Philippines and South Korea.

AirAsia Philippines has also said that it likewise plans to expand its domestic routes by adding more direct flights to popular local destinations. — A.E.O. Jose

Champagne galore! Shipwreck gives Polish divers something to celebrate

BUBBLY MAUREEN LONG/FLICKR

WARSAW — Polish divers have found a 19th-century shipwreck off the coast of Sweden laden with bottles of champagne, a “very exclusive” cargo they say may have been destined for the tsar of Russia before the vessel sank.

They discovered the wreck, which also contains porcelain and bottles of mineral water, around 60 meters below the surface of the Baltic Sea, but say they would need permission from Swedish authorities to bring the cargo to shore.

“This ship is almost whole there, it is not destroyed much, only the bow was a bit damaged,” said Marek Cacaj from the Baltictech diving group.

“In the beginning, we didn’t pay attention to the load of this ship, we just went around it. But then we noticed many bottles, firstly the bottles of champagne.”

Mr. Cacaj said the divers had identified the brand of champagne, which he described as “very exclusive.”

“Most likely, this champagne belonged to the tsar, so the load was meant to go to Russia, which could really increase its value a lot,” he said.

“We also know, because we are in touch with the producer of this champagne, that there was a champagne produced specifically for the tsar that was sweeter, just for him.”

If the divers get permission to remove some bottles, Mr. Cacaj said, they will send them to the manufacturer to ascertain how much they might now be worth and whether they are still drinkable.

However, it is not only the champagne that would have been valuable to people at the time, as mineral water was highly prized for its reputed medicinal qualities.

“We need to remember that in those times… mineral water was a very precious load,” Mr. Cacaj said. “It was often escorted by police or the army.” — Reuters

Carina and EV insurance

PHILIPPINE STAR/MIGUEL DE GUZMAN

Typhoon Carina and the monsoon rains resulted in flooding in many parts of the country last week, which led to much damage not only in Metro Manila but more so in Northern and Central Luzon. Seeing how the floods adversely affected particularly land transport, I can only wonder if the recent typhoon is making electric vehicles (EV) owners rethink their purchases.

Late last year, I wrote about how improvements in EV range, and EV’s seemingly lower maintenance cost compared to regular cars, were making me consider shifting to an EV for daily use. But with last week’s rains, and the ensuing damage to many vehicles caused by the widespread flooding, I now have my doubts.

Car manufacturers, car dealers, and the motor vehicle insurance industry will be helping the market make a more informed decision on future vehicle purchases if they can make public any data on how vulnerable EVs and hybrid cars are to flood damage. Are EVs and hybrid cars more vulnerable than gas or diesel cars to severe or even “total” damage from floods?

Also, are flood-damaged EVs and hybrid cars more expensive or more difficult to repair? How big is the inventory of parts and components that manufacturers make available to car dealers to repair these EVs and hybrid cars? And, what is the level of expertise of dealerships to repair damaged vehicles in a timely manner? I reckon at this point EVs and hybrid cars can be repaired only by the casa or the dealerships.

I am unsure as to what metrics can be presented to the public. Perhaps the number of insurance claims filed by EV owners claiming flood damage? And of these claims, how many of these EVs or hybrid cars were declared a “total loss”? And maybe the average cost of repair for these EVs and hybrid cars? As for regular cars claiming flood damage, what percentage are declared a “total loss” and the average cost of repair?

I can only assume that flood damage to hybrid and EVs can present significant challenges for both owners and insurers. I am unsure how complex the process is of handling such insurance claims, but I guess even the level of expertise of in-house claims evaluators may not be very high when it comes to EVs and hybrid cars and determining whether they can be repaired.

It is my understanding that EVs and hybrids can incur higher repair costs due to their specialized components, particularly the battery, which I reckon can be highly susceptible to water damage as it is “electric” and is usually mounted at the bottom of the vehicle. The high cost of EV battery replacement may be enough to prompt insurers to classify flood-damaged EVs as total losses.

And given the relatively small size of the EV and hybrid market at present, there may be a limitation if not scarcity of parts and perhaps even the specialized skills required for repairs. And then there are the potential difficulties in processing claims. I am uncertain at this point if EVs and hybrid vehicles pay higher insurance premiums because of these reasons.

There have been enough public discussions on how damaged EV batteries can pose very serious safety risks, such as short circuits or fires, making EVs risky to repair in many cases. The standards required for containment, for instance, are also different for EVs compared to regular vehicles. Isolation and fire proofing are a must for damaged EVs under repair. In this sense, insurers may be more inclined to just pay for a total loss than pay for a costly and risky repair job.

The bigger question is how feasible it is to repair a flood-damaged EV. Also, is it cost-effective? Water exposure can already lead to extensive damage to the battery, electrical systems, and other critical components of regular cars, what more for EVs and hybrid vehicles? And, assuming cost-effective repairs are possible, what is the impact of flood damage on the long-term reliability of an electric vehicle?

For many flood-damaged regular cars, corrosion and electrical issues can persist after repairs, leading to recurring maintenance problems. And considering that EVs and hybrid vehicles may be more vulnerable to flood damage given the nature and character of their electrical systems, the risks posed by corrosion and electrical issues to them may be more severe.

Carina is one instance where transparency in insurance claims data will be helpful to the market. Car manufacturers and their dealers should also be upfront and forthright when responding to inquiries from customers on how their EVs and hybrid vehicles performed during and after the floods, and how their service centers dealt with flood-damaged vehicles.

The simplified approach is to simply declare as a total loss any EV that was submerged in flood water from maybe the dashboard and up, and for a specific period, say two hours or more. This can simplify the claims process, and, in a way, reduce future risks related to the performance and safety of an EV or hybrid car that is repaired. However, this can also be very costly to insurance companies, and the insured.

The issue is whether we can risk attempting extensive repairs on complex and sensitive machinery such as EVs and hybrid vehicles. It is a fact that EVs and hybrids do not run or operate anything like gas or diesel vehicles. In the coming months, I am sure the pre-owned market will be flooded — no pun intended — with relatively new cars.

Ultimately, the market might see a rise in insurance premiums for EVs and hybrid vehicles. At this point, I believe it will be difficult for the public to insist on parity with insurance premiums for regular cars. Again, claim history after Carina will be a determinant here, and perhaps the Insurance Commission should thoroughly analyze the data before making any calibrations.

 

Marvin Tort is a former managing editor of BusinessWorld, and a former chairman of the Philippine Press Council

matort@yahoo.com

AUB net income climbs by 27% in the first half

ASIA UNITED Bank Corp. (AUB) saw its consolidated net income rise by 27% to P5.2 billion in the first half on the back of higher revenues, it said on Wednesday.

“Thanks to the improving business environment, AUB continues to deliver consistent performance in the first half of the year. To remain a ‘challenger bank’ among the country’s top listed universal banks, we must become the ‘Digital Partner of Choice,’ advocating for open collaboration and helping others share in our success and responsibility to deliver financial inclusion,” AUB President Manuel A. Gomez said in a statement.

Its financial statement was unavailable as of press time.

The bank’s income performance for the first semester translated to a return on equity of 21.9% and a return on assets of 3.1%.

Net interest income grew by 10% to P8.2 billion in the first six months of 2024, mainly driven by higher earnings from loans and its investment activities.

As a result, its net interest margin stood at 5.4%, up from 5% a year prior.

Meanwhile, AUB’s operating expenses rose by 7% to P3.3 billion due to higher compensation, capital expenditures, and investments in further business growth.

Its cost-to-income ratio stood at 33.5%.

The bank’s improved asset quality also contributed to its strong first-half performance, it said, as its nonperforming loan (NPL) ratio went down to 0.43% from the previous year’s 0.9%.

NPL coverage ratio stood at 150.8%, up from 114.8% a year ago.

AUB set aside loan loss provisions worth P78 million in the first half, 92% less than the P952 million recorded in the same period last year.

Total loans stood at P187.9 billion at end-June, it said.

On the funding side, its deposits were at P281.1 billion, with 75% being low-cost current account, savings account deposits, higher than the 72% share recorded in the comparable year-ago period.

AUB’s loan-to-deposit ratio was at 66.8%.

The bank’s total assets stood at P349 billion at end-June, expanding by 6% from the year-ago level.

Total equity also increased by 18% year on year to P51.6 billion amid retained earnings.

The bank’s common equity Tier 1 ratio was at 17.8%, while capital adequacy ratio was at 18.6%, both above the regulatory minimum.

AUB’s shares rose by 80 centavos or 1.9% to close at P42.90 each on Wednesday. — A.M.C. Sy

OPPO launches new Watch X in the Philippines

OPPO Philippines has launched its smartwatch OPPO Watch X in the country, it said on Tuesday.

The OPPO Watch X is priced at P18,999 and is now available at OPPO Stores and via its official Shopee, Lazada, and TikTok Shop channels, it said in a statement.

“The OPPO Watch X is made for those who strive for balance, seek to optimize their performance, and value both style and functionality. Whether you’re hitting the gym, taking a breather, or heading to the office, or enjoying a night out, the newest wearable from OPPO adapts to every facet of your life,” the brand said. “More than just a smartwatch, the OPPO Watch X integrates cutting-edge technology to elevate holistic wellness.”

The OPPO Watch X features premium materials, including a stainless steel case and a sapphire crystal glass screen. It is built to military-grade standards and can withstand extreme temperatures, shocks, and solar radiation, the brand said. The watch also has an IP68 rating and 5ATM water resistance.

It has a 1.43-inch AMOLED display and is powered by a 500mAh battery for up to 100 hours of usage on a single charge, or even up to 12 days when using Power Saver Mode. The watch also supports fast charging via OPPO’s Watch VOOC Flash Charging technology.

The OPPO Watch X runs on Wear OS 4 by Google for wide app support. Users can also customize the smartwatch’s Home and Function buttons.

The smartwatch has advanced sleep tracking features to analyze sleep stages and also identify irregularities. Meanwhile, its stress detection features include monitoring of heart rate variability, skin temperature, and other physiological indicators.

It also supports over 100 workout modes and tracking for 11 popular sports, including running, badminton, tennis, and swimming.

“Equipped with advanced sensors and OPPO Sense algorithms, the OPPO Watch X provides professional-grade sports tracking and insights that cater to all levels of fitness enthusiasts. Runners can benefit from real-time data on Ground Contact Time (GCT), GCT Balance, and Vertical Oscillation, as well as detailed post-run analysis to refine running posture and pacing,” OPPO said.

“For badminton players, the dedicated mode analyzes shot distribution, swing speed, and heart rate intervals, giving you the competitive edge to elevate your game,” it added.

The OPPO Watch X is available in two colors, namely Platinum Black and Mars Brown. — BVR

Largest solar project 54% complete

MICHAEL WILSON-UNSPLASH

SP New Energy Corp. (SPNEC) said its P200-billion Terra Solar project is 54% complete and would be completed by 2027.

Key progress areas include land control, which is 49% complete, and transmission line right-of-way, which is 34% done, Emmanuel V. Rubio, newly elected president and chief executive officer of SP New Energy and Meralco PowerGen Corp. (MGen), told a recent news briefing.

SP New Energy has secured permits for pre-development at 58%. Solar farm development already achieved an 88% progress rate, procurement at 61%, interconnection development at 35%, and photovoltaic site clearing about 24% complete.

“The Terra Solar project remains on track for key milestones with significant progress anticipated in the coming months,” Mr. Rubio said.

The company is reviewing contract offers for the engineering, procurement, and construction of the first phase of the project.

The Terra Solar project in Nueva Ecija and Bulacan consists of a 3,500-megawatt solar power plant and a 4,000-megawatt-hour energy storage system. It is expected to generate more than five billion kilowatt-hours of electricity yearly.

The first phase of the project is scheduled to be delivered by 2026, while Phase 2 is targeted for 2027.

The company is seeking investors for additional financing to develop what it says will be the world’s biggest solar farm.

Mr. Rubio said the solar project has drawn interests from foreign companies based in Japan, the United States, Middle East and London.

Manuel V. Pangilinan, chairman of SP New Energy and Manila Electric Co. (Meralco), said there are “very active” and “very keen interests” from investors for the solar project.

“[There is a] very long list of investors so I think the actual bid date binding offer should be Aug. 15,” he told reporters. “By the end of August, the board will have to choose.”

SPNEC took full control of Terra Solar after acquiring the entire stake of Prime Infrastructure Holdings, Inc. last year for P6 billion.

Established in 2020, Terra Solar was a 50-50 joint venture between Prime Infra and Solar Philippines Power Project Holdings, Inc., the parent company of SP New Energy.

SP New Energy is controlled by the Pangilinan group through MGen Renewable Energy, Inc.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT, Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., has an interest in BusinessWorld through the Philippine Star Group, which it controls. — Sheldeen Joy Talavera

Dining In/Out (08/01/24)

Solaire presents promos with Lifestyle Card

DINE at Solaire Resort Entertainment City and Solaire Resort North with discounts and rebates with the Solaire Rewards Lifestyle Card. At Fresh, the card can get the user a 20% discount and 20% rebate. With the Lifestyle Card, get a 10% discount and earn a 10% rebate on these dining establishments: Finestra, Yakumi, Red Lantern, and Oasis Garden Café. Over a Over at Solaire Resort North, with the Solaire Rewards Lifestyle Card, one can get a 20% discount and 20% rebate at the Pool Cafe. Meanwhile, at Manyaman, Finestra, Red Lantern, and Yakumi card users get a 10% discount and 10% rebate. Sign up to be a member by downloading the MySolaire App or scan the QR code at any F&B or participating resort outlets at Solaire Resort Entertainment City and Solaire Resort North.

McSavers Sulit Busog Meals available all day

Enjoy McSavers Sulit Busog Meals from breakfast to dinner as McDonald’s extends its offers all day long, each at a price of P99 in all stores nationwide. “Since the launch of McSavers Sulit Busog Meals last April, the response has been overwhelmingly positive,” said McDonald’s Philippines Marketing Manager Yves Nacpil in a statement. “Building on that, customers can now enjoy the sulit price of P99 during breakfast hours as we add two new breakfast offers in the line-up: our Cheesy Eggdesal with Hash Browns and Drink meal and Longganisa with Egg and Drink meal.” The two new breakfast McSavers Sulit-Busog Meals join Crispy Chicken Fillet Ala King with extra rice, one Chicken McDo, Cheeseburger with fries, and one Mushroom Pepper Steak with fries Meals.

Fiscal consolidation, DBM reforms, and global growth

I will cover three topics today, so we go straight to the numbers.

On July 29, the Department of Budget and Management (DBM) released the budget materials for 2025. These include the National Expenditure Program (NEP), the Budget of Expenditures and Sources of Financing (BESF), Staffing Summary, and the President’s Budget Message.

I will now compare the projections in the fiscal program in BESF 2024 vs BESF 2025. Although the Obligation budget is the same in both documents, the projected disbursements differ — P5.63 trillion for 2024 and P5.75 trillion for 2025, or higher by around P126 billion in the latter. Consequently, the projected deficit is higher by P127 billion.

More borrowings were needed this year than initially projected last year. Our interest payment is jumping like a kangaroo: from P503 billion in 2022, it rose to P628 billion in 2023, is projected to be P763 billion this year, P848 billion in 2025, and up to P1.06 trillion in 2027, or an average increase of P111 billion/year on interest payment alone, with principal amortization not included yet.

The outstanding public debt is projected to increase by P1.3 trillion/year on average, from P13.418 trillion in 2022 to P14.616 trillion in 2023 to P17.354 trillion in 2025 (see Table 1). 

DBM REFORMS TOWARDS FISCAL CONSOLIDATION
Fiscal consolidation should have the end goal of reducing the public debt stock, reducing the annual interest payment, and reducing overall interest rates as government competition for funds decline, and in the process facilitate sustained economic growth and high job creation. From the DBM social media accounts, I see that among their major reforms are: Public Financial Management (PFM), Early Procurement Activities (EPA), cash budgeting, and the National Government Rightsizing Program (NGRP).

PFM means more fiscal transparency through the principles of aggregate fiscal discipline (spending within one’s means), allocative efficiency (spending on the right priorities), and operational efficiency (spending with the greatest value-for-money). EPA is meant to ensure the timely implementation of government projects — the procuring entities (PEs) can commence with the procurement once the proposed budget has been made, in the case of the National Government when the National Expenditure Program (NEP) has been submitted to Congress. Cash budgeting is meant to ensure the availability of cash resources for priority development projects, quicken the government’s budget utilization, promote discipline since agencies will only propose projects and programs that are implementation-ready.

The NGRP is meant to streamline national government agencies through regularization, merging, restructuring, abolition, or transfer of government agencies to create a more efficient bureaucracy. As an advocate of minimal government and bureaucracy, my favorite among the four are PFM and NGRP. Government should learn to live within its means, and control spending and borrowing that are not supported by existing revenues. Better yet, live below the means, have a fiscal surplus when there is no economic crisis and reduce the debt stock. NGRP is self-explanatory.

DBM Secretary Amenah F. Pangandaman says that “fiscal consolidation remains an important goal for DBM and the Development Budget Coordination Committee. Allocate public resources to projects, physical and social infrastructures with the greatest positive impact to the people in raising their productivity, facilitate stronger economic performance to outgrow the debt, achieve the medium-term goals of Deficit/GDP ratio of 3.7% and Debt/GDP ratio of 56% or lower by 2028.”

DEGROWTH IN EUROPE
Last Monday and Tuesday, several European countries reported their 2nd quarter (Q2) 2024 GDP performance. I consolidated their Q1 and Q2 data into first half (H1) GDP growth this year. Few have growth above 1%, most are below 1% and some have even contracted like Germany, Austria and Ireland. In contrast, many East Asian countries have had growth of 2.8% to 6+% over the same period (see Table 2).

It is ironic that many European countries are busy with “Save Ukraine” or “Save the planet” policies but cannot save their own economies from degrowth and deindustrialization. East Asians (except Japan) are busier saving their economies and manufacturing from degrowth and blackouts by keeping their use of fossil fuels or hydrocarbon power plants high or rising.

The Philippines’ Q2 2024 GDP will be reported on Aug. 8. I predict growth of 6% to 6.2%. I will explain the numbers here next week.

 

Bienvenido S. Oplas, Jr. is the president of Bienvenido S. Oplas, Jr. Research Consultancy Services, and Minimal Government Thinkers. He is an international fellow of the Tholos Foundation.

minimalgovernment@gmail.com

AXA Philippines appoints new president and CEO

AXA PHILIPPINES Life and General Insurance Corp. on Wednesday said it has appointed Ayman Kandil as its new president and chief executive officer (CEO) effective Oct. 1.

Mr. Kandil, who is currently AXA Philippines’ chief distribution officer and a member of its executive committee, will replace Bernardo Serrano López, who has held the post for two years, the company said in a statement.

He has over 26 years of experience in the insurance industry, AXA Philippines said, and was previously CEO of AXA Egypt, overseeing four companies: AXA Egypt Investment, AXA Egypt Life, AXA Egypt Non-Life, and AXA Egypt Services.

“We are thrilled to welcome Ayman in his next big journey at AXA as the new president and CEO of AXA Philippines,” Sally O’Hara, CEO of AXA Southeast Asia and Korea, was quoted as saying. “His leadership and expertise will be invaluable as we continue to drive AXA’s purpose of acting for human progress by protecting what matters. His commitment to innovation and excellence aligns perfectly with our values and strategic objectives.”

“I am deeply honored and excited to take on the CEO role in AXA Philippines,” Mr. Kandil said. “The Philippines is a strong market with so many great opportunities to make a difference in people’s lives. Through our work here in AXA, we aspire to be able to provide the best insurance solutions for Filipinos. I look forward to continuing the company’s success and service to its customers and other stakeholders, as it has been doing for the past 25 years since AXA was established in the Philippines.”

Meanwhile, Mr. Serrano López will move to a new role within the AXA Group, the company said, where he is expected to continue collaborating with AXA Philippines’ board.

AXA Philippines posted a net income of P2.73 billion and a premium income of P21.76 billion in 2023, latest data from the Insurance Commission showed. — B.M.D. Cruz

Every day is sustainability day: The new normal for retail business

The retail landscape, once dominated by an incessant focus on maximizing profit margins, is undergoing a necessary shift. Consumers are increasingly demanding sustainable practices from the brands they support, and environmental consciousness is no longer a fad but a vital business consideration. This necessitates a paradigm shift — everyday operations, not just designated “green campaigns,” need to be grounded in sustainability principles.

And there are compelling reasons for retail businesses and mall operators to embrace everyday sustainability:​

• Environmental Responsibility: The retail industry contributes significantly to environmental concerns. Energy consumption from lighting, cooling, and operations generates substantial carbon footprints. Additionally, packaging waste and product transportation have detrimental effects. Implementing everyday sustainable practices helps mitigate these concerns, contributing to a healthier planet.

• Customer Demand: Today’s consumers are environmentally conscious and prioritize brands that align with their values. Studies show a growing willingness to pay a premium for sustainable products and services. By adopting everyday sustainability measures, businesses can cater to this growing segment and gain a competitive edge.

• Cost Reduction: Sustainable practices often lead to operational efficiencies. Energy-saving measures, waste reduction strategies, and responsible sourcing can contribute to significant cost savings in the long run. This creates a win-win situation for both the environment and the company’s bottom line.

• Enhanced Brand Image: Implementing everyday sustainability initiatives fosters a positive brand image. Consumers perceive eco-conscious companies as responsible and trustworthy. This reputation translates to increased brand loyalty and customer advocacy.

In the Philippines, there is one retail giant that is leading the industry towards a more sustainable way of life for every Filipino, i.e., SM.

For Filipinos, SM Store is an experience etched into the consciousness of everyday life. From the bustling streets of Manila to the remote corners of the archipelago, SM Store has been shaping consumer habits, influencing preferences, and impacting daily routines for millions. But beyond its undeniable commercial presence, it has also demonstrably impacted Filipino lives through its SM Green Finds program, fostering a more environmentally conscious society.

SM Store’s omnipresence is undeniable — provides Filipinos with a one-stop shop for everything from clothing to personal care to school supplies and much more. These SM Stores serve as the quintessential source for everyday essentials for every member of the family.

With its scale and reach, the company has implemented a green retail initiative, SM Green Finds, to provide Filipinos access to sustainable items and help its customers pivot to a greener lifestyle.

Sustainable products are displayed and well-appointed in the various selling pads across the different sections of the Store. The Green Finds badge is attached to products that are sustainably sourced and made from eco-friendly materials. These products bearing the Green Finds badge may have gone through a green technology or have been locally manufactured by social enterprises.

As a marketplace for green finds, located in strategic store locations across the Philippines, and its brand of customer service, the SM Store has, indeed, become an integral part of a greener lifestyle for many Filipinos.

From sustainable fashion to clean beauty products, and eco-friendly home essentials, SM Store ensures that customers can find everything they need to adopt a greener lifestyle under one roof.

Recognizing the importance of having a green option for its customers, there is a dedicated Green Finds display area embedded in each section of the SM Store.

Thus, the SM Store’s new brand story anchored on the messaging and frame — Everyday Store — is very apt in the ever-changing retail landscape in the Philippines.

Essentially, SM Store is a Filipino staple — an everyday store — and part of the Filipino family’s daily purchase decisions. Evidently, the success and legacy of SM Store as an everyday store lies in its ability to provide a wide range of products, strategic accessibility with over 80 branches nationwide, and customer-centric services. It has seamlessly integrated itself into the daily lives of Filipinos, making shopping a convenient and enjoyable experience. Whether you are looking for the latest fashion, home essentials, personal care products, and other daily essentials, the SM Store has it all for you.

Beyond providing a platform for shopping, SM has also significantly impacted Filipino consumer behavior. They’ve introduced Filipinos to new trends and now to a new way of life — a greener and more intentional lifestyle.

SM also plays a significant role in supporting local businesses. Through partnerships with Filipino suppliers and social enterprises — they offer a platform for locally sourced products, promoting sustainable practices and supporting rural communities. This focus on local sourcing reduces the environmental impact of transportation and strengthens the domestic economy.

A CATALYST FOR CHANGE
Beyond its immediate impact, SM serves as a catalyst for change. Their commitment to sustainability sends a powerful message to Filipinos, normalizing eco-conscious practices and paving the way for a more sustainable future. By showcasing sustainable alternatives and demonstrating the economic viability of sustainable practices, SM educates and empowers Filipinos to make environmentally responsible choices.

Arguably, SM’s impact on Filipinos transcends mere commerce. The company has become an integral part of the daily experience, shaping consumer behavior and influencing preferences. But, more importantly, SM champions sustainability through its various initiatives. These practices empower Filipinos to make eco-conscious choices, influencing their approach to consumption and waste management. In essence, SM has woven the threads of sustainability as part of daily lives of every Filipino, paving the way for a greener future. As SM continues to evolve, one can only hope that their commitment to environmental responsibility continues to be a cornerstone of their success, inspiring a more sustainable future for the Philippines.

 

Dr. Ron F. Jabal, APR, is the CEO of PAGEONE Group (www.pageonegroup.ph) and founder of Advocacy Partners Asia (www.advocacy.ph).

ron.jabal@pageone.ph

rfjabal@gmail.com

​Canva to acquire GenAI startup Leonardo.Ai

CANVA, Inc. on Tuesday said it will acquire Australian generative artificial intelligence (GenAI) startup Leonardo.Ai to boost its suite of visual tools.

“The acquisition complements Canva’s offering and enhances the company’s vision to build a world-class suite of visual AI tools, marking this as an important milestone in its AI journey,” Canva said in a statement on Tuesday.

Leonardo is the eighth company acquired by Canva alongside Affinity, Flourish, Kaleido, Smartmockups, Pexels, Pixabay, and Zeetings.

The GenAI startup offers features such as creating assets for marketing and advertising campaigns, interior concepts, mockups, and producing videos.

“We’re thrilled to welcome Leonardo.AI to Canva — two Australian companies joining forces to bring world-first breakthroughs in AI and creativity,” said Cameron Adams, co-founder and chief product officer of Canva.

Leonardo’s team of 120 researchers, engineers, and designers will also bolster Canva’s research and development capabilities, the company said.

“This field is constantly evolving, and Leonardo’s technical leadership and community impact can’t be overstated. Bringing our worlds together will accelerate each of our teams’ work, taking us from strength to strength, and we can’t wait to get started,” Mr. Adams added.

JJ Fiasson, founder and chief executive officer of Leonardo.AI, said joining the Canva means it can invest more in scaling its AI research efforts globally and deliver new features and functionality to creatives worldwide.

Leonardo.Ai, founded in 2012, allows its creators to generate images in any chosen aesthetic in seconds with simple prompts, create videos, sketch with AI, and custom-train models with their own datasets.

The company has more than 19 million registered users and is used in various industries such as e-commerce and architecture. — A.R.A. Inosante

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