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Growing business commitment in accelerated race to net zero

More than a mere move, the effort of businesses towards achieving net-zero carbon dioxide emissions or carbon neutrality is now seen more as a race to mitigate the heightening impacts of climate change. For over two years, more and more businesses have stepped up to do their share in assessing, reducing, and offsetting their carbon emissions.

According to its 2021 annual report, 2,253 companies covering over a third of global economy market capitalization were working with the Science Based Targets initiative (SBTi), a global body that enables businesses to set emissions reduction targets in line with the latest climate science. This is a large acceleration compared to 918 companies recorded in 2020.

SBTi added that companies with approved targets are reducing emissions at an accelerating pace. In 2020, these companies collectively reduced scope 1 and 2 emissions by 12%, which resulted in a total-emissions decrease of 29% between 2015 and 2020, compared to a 25% reduction between 2015 and 2019.

Scope 1 emissions cover direct emissions from owned or controlled sources, while scope 2 emissions cover indirect emissions from the generation of purchased electricity, steam, heating, and cooling consumed by the company.

“An annual 4.2% emissions reduction is required for 1.5°C-aligned science-based targets. A typical SBTi-approved company has been even more ambitious than the 1.5°C trajectory, with a linear rate of 8.8% scope 1 and 2 reductions a year during the period with approved targets,” SBTi added in its report.

The previous years have also seen corporations going public with their net-zero ambitions.

The Climate Pledge, co-founded in 2019 by Amazon and Global Optimism, has been inviting well-known companies to reach net-zero carbon emissions by 2040, or 10 years ahead of the United Nations’ timeline.

As stated on their website, signatories to the said pledge must agree to measure and report greenhouse gas (GHG) emissions on a regular basis; implement decarbonization strategies in line with the Paris Agreement through real business changes and innovations; and neutralize any remaining emissions with additional, quantifiable, real, permanent, and socially beneficial offsets.

Since last March, The Climate Pledge has had more than 300 signatories. Among the companies that joined this pledge are consumer electronics retailer Best Buy, technology companies IBM and Microsoft, consumer goods companies Procter & Gamble and Unilever, software company Salesforce, wireless network operator Verizon, container shipping company Maersk, enterprise software developer SAP, and connected car and audio services brand HARMAN.

Investors and companies have also grouped together for Climate Action 100+, which is considered the world’s largest investor engagement initiative on climate change. The initiative has 615 signatories as of 2021, accounting for a record US$65 trillion in assets under management.

“These investors are engaging with 167 of the world’s biggest listed corporate emitters and driving faster corporate climate action in line with the global goal of reaching net-zero emissions by 2050 or sooner,” Climate Action 100+ said in its 2021 Progress Report.

The report also highlighted companies’ faster and more ambitious climate commitments resulting from investor engagement through the initiative.

Bloomberg New Energy Finance analysis from September 2021, which builds on Climate Action 100+’s Net-Zero Company Benchmark, found that 111 focus companies have set net-zero targets for 2050 or before, compared to just five in 2018 after the initiative’s launch.

“To demonstrate the scale of impact, it is estimated that these net zero targets — which Climate Action 100+ investors have played a significant role in securing — will reduce GHG emissions by 9.8 billion metric tons annually by 2050, roughly equivalent to China’s annual emissions,” the initiative added.

Philippine companies have also stepped up to join the global race to net-zero targets.

In October last year, Ayala Corp. announced its pledge to work towards achieving net zero carbon emissions by 2050. Each business unit of the group is expected to have its own regularly-updated net-zero roadmap.

Moreover, Globe Telecom, Inc., which is under Ayala Corp., is the first Philippine company that committed to the SBTi. More recently, Globe was included in the list of top 200 Climate Leaders in Asia Pacific, based on a special report developed by the Financial Times, Nikkei Asia, and Statista.

Among Globe’s initiatives in reducing its GHG emissions, it has deployed over 8,500 green network solutions such as fuel cell systems, direct current-hybrid generators, free cooling systems, and lithium-ion batteries.

In line with the multinational’s push, Nestlé Philippines is targeting net-zero as well by 2050. The company seeks to achieve the target by switching to renewable energy and implementing circular economy practices.

Office developer NEO, meanwhile, has achieved five-star certifications for net-zero carbon energy in three of its buildings under the Philippine Green Building Council’s Advancing Net Zero Philippines Program, which verifies a development’s net-zero carbon energy emissions.

Both Nestlé Philippines and NEO are supported by power distribution company AboitizPower in their net-zero targets. Both companies use 100% clean and renewable energy from AboitizPower’s MakBan geothermal power plant.

Last August, building materials company Cemex Philippines announced its plan to be a net-zero company by 2050. It also introduced in its portfolio a new low-carbon and eco-friendly product line.

In just a few years, triggered by the coronavirus pandemic, targeting net zero is now more seriously considered by organizations. Yet, with all the commitments and plans, achieving net-zero seems to be a starting point for better goals.

Economics researcher Oliver Miltenberger of the University of Melbourne and environmental policy expert Matthew D. Potts of the University of California, Berkeley stressed that while the world can keep global warming in check if emissions reach net-zero by 2050, there is still a need for GHG removal beyond net-zero emissions targets. The “real act of climate cleanup” is thus seen to only begin when more than net-zero emissions are eliminated.

“While net zero is a critical step toward addressing climate change, it must be achieved smartly. And, importantly, it can’t be the end goal,” the researchers wrote in The Conversation. — Adrian Paul B. Conoza

AboitizPower promotes elevated sustainable living through the circular economy

ELEVATING THE SUSTAINABILITY CONVERSATION. In this photo are (Top, L-R) AboitizPower Vice-President for Reputation Management Suiee Suarez, Research and development and communications specialist for Humble Sustainability Rianna Bengzon, Dean of the School of Environmental Science and Management of the University of the Philippines-Los Baños Dr. Rico C. Ancog; (Bottom, L-R) AboitizPower President and Chief Executive Officer Emmanuel V. Rubio and #BetterTogether host Neli Marzo.

As the country’s leading producer of renewable energy, sustainability has always been at the core of AboitizPower’s philosophy and business operations.

Alongside the company’s commitment to delivering 4,600 megawatts (MW) of sustainably-sourced energy by 2030 — or around 50% of its targeted 9,200-MW portfolio — AboitizPower continues to go further in its mission for a sustainable future by implementing environmentally-conscious practices at its offices and sites, and encouraging team members to integrate sustainability into their lives.

Beyond tree-planting activities or coastal cleanups, AboitizPower is elevating conversations on sustainability across its subsidiaries. Just recently, the company held a virtual event where guest speakers discussed the circular economy and offered ways to harmonize it with the day-to-day of both the company’s business operations and the lives of team members.

Leading the event, AboitizPower President and Chief Executive Officer Emmanuel V. Rubio talked about the urgency of finding solutions that mitigate the impact of businesses on the environment and ensure the well-being of people and communities that are directly affected.

“We take this challenge to heart in 1AP, and that is why I’m proud to share that we are taking big leaps to integrate the circular economy mindset into our business operations. We’re not only being mindful of our waste, but we’re also being purposeful with what we do with it,” said Mr. Rubio.

LIVELIHOOD OPPORTUNITIES. Residents from Barangay Inawayan and Barangay Binugao who were trained for brickmaking demonstrate the process of making the eco-bricks and eco-pavers.

Mr. Rubio highlighted the Fly Ash Ecobrick Project undertaken by AboitizPower and its partner Green Antz, a Philippine-based circular economy and innovation group. The project takes fly ash waste from the thermal plants of AboitizPower and is processed into a viable raw material that creates durable, long-lasting ecobricks for construction. The resulting ecobricks are stronger than regular hollow blocks, cost less per square meter than the usual construction materials, and benefit the Inawayan and Binugao partner communities of AboitizPower in Davao.

Other speakers at the event were Dr. Rico C. Ancog, the current dean of the School of Environmental Science and Management of the University of the Philippines-Los Baños, who touched on the development of the circular economy in the Philippines, and Rianna Bengzon, research and development and communications specialist for Humble Sustainability, one of the homegrown Filipino organizations looking to close the loop and make a circular economy more accessible and profitable for local enterprises.

As part of AboitizPower’s purpose to transform energy for a better world, the company believes that sustainability should always be about creating shared value and making a positive impact on the communities it serves and operates in. Bringing a circular economy model into its business operations is a prime example of how AboitizPower continues to transform sustainability both within the power industry and throughout the nation.

“Integrating elevated sustainability practices into our business and into how we interact with our communities is our way of creating economies of the future — ones that are inclusive and sustainable, and built on innovations that bridge the gap between the environment and the economy,” said Mr. Rubio.

“Throughout our transformation journey towards a better world, we will continue to look for holistic ways to use our capabilities and resources to transform the way we produce and consume, to help our business become more circular and innovatively sustainable.”

 

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Alviera Country Club, Inc. to conduct annual stockholders’ meeting via online remote communication on Sept. 30

 

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Elizabeth, the queen who moved with a changing world

Official portrait of Queen Elizabeth II before the start of her 1959 tour. — Library and Archives Canada/CC BY 2.0/Wikimedia Commons

LONDON — The crowning achievement of Britain’s Queen Elizabeth, who died on Thursday after 70 years on the throne, was to maintain the popularity of the monarchy across decades of seismic political, social and cultural change that threatened to make it an anachronism.

A dignified, dependable figure who reigned longer than any other British monarch, Elizabeth helped steer the institution into the modern world, stripping away court ritual and making it somewhat more open and accessible, all in the glare of an increasingly intrusive and often hostile media.

While the nation she reigned over sometimes struggled to find its place in a new world order and her own family often fell foul of public expectations, the queen herself remained a symbol of stability. She also tried to transcend class barriers and earned the grudging respect of even hardened republicans.

To much of the world she was the personification of Britain, yet she remained something of an enigma as an individual, never giving an interview and rarely expressing emotion or offering a personal opinion in public — a woman recognized by millions but known by hardly anyone.

“I think she’s brought life, energy and passion to the job, she’s managed to modernize and evolve the monarchy like no other,” her grandson Prince William, who is now the heir to the throne, said in a television documentary in 2012.

THE YOUNG QUEEN
Elizabeth Alexandra Mary was born on April 21, 1926 at 17 Bruton Street in central London.

The young princess never expected to ascend to the throne: it was only after her uncle King Edward VIII abdicated in 1936 because of his love for American divorcee Wallis Simpson that the crown passed to her father, George VI, when she was 10.

She was just 25 when her father died and she became Queen Elizabeth II on February 6, 1952, while on tour in Kenya with her husband Prince Philip. Winston Churchill was the first of 15 prime ministers who served during her reign.

“In a way I didn’t have an apprenticeship, my father died much too young and so it was all a very sudden kind of taking on, and making the best job you can,” she said in a 1992 documentary.

“It’s a question of maturing into something that one’s got used to doing and accepting the fact that here you are and it’s your fate. It is a job for life.”

During her 70 years on the throne Britain underwent dramatic change.

The austere postwar 1950s gave way to the swinging 60s, the divisive leadership of Margaret Thatcher in the 80s, Tony Blair’s three-term New Labour era, a return to economic austerity and then the coronavirus disease 2019 (COVID-19) pandemic.
Labour and Conservative governments came and went, feminism changed attitudes to women, and Britain became a much more cosmopolitan, multi-ethnic society.

Elizabeth was on the throne for most of the Cold War from the death of Soviet leader Josef Stalin. During her reign there were 14 US presidents, from Harry S. Truman to Joseph R. Biden, Jr., and she met all bar Lyndon Johnson.

Britain’s vote to leave the European Union in 2016 exposed deep divisions in British society, while nationalists continued their push for a new referendum on Scottish independence that had the potential to rip apart the United Kingdom.

“As we look for new answers in the modern age, I for one prefer the tried and tested recipes, like speaking well of each other and respecting different points of view; coming together to seek out the common ground; and never losing sight of the bigger picture,” the queen said ahead of a 2014 referendum on Scottish secession, in what appeared to be a message to politicians. Scots voted to remain in the United Kingdom.

MORE EGALITARIAN
Over time, Britain evolved into a more egalitarian society, where the ruling class had to make way for a burgeoning middle class, where aristocrats no longer dominated the top universities and the majority of hereditary peers lost their seats in parliament’s House of Lords.

At first, Elizabeth relied heavily on her father’s old circle of advisers but gradually she brought in more career diplomats and business executives to the royal court as she and her husband Philip sought to modernize the monarchy.

“She’s shrewd, she’s compassionate, she has a good deal of insight, and she has the typical and traditional virtues that you associate with the British,” former Prime Minister John Major said amid celebrations to mark her 90th birthday.

“If you were designing someone to be monarch here in Britain, I think you would design someone exactly like Elizabeth II.”

In 1992, the queen responded to criticism about royal wealth by offering to pay income tax and cutting the number of her family members on the state payroll.

But her years on the throne were often far from smooth sailing.

She spent much of the early part of her reign saying farewell to the British Empire amassed under her forebears, from Kenya to Hong Kong. Barbados was the most recent country to dispense with her as head of state in November 2021.

However, she remained the monarch of 15 countries and head of the Commonwealth.
Her marriage to Philip, a Greek prince she wed aged 21, stayed solid for 73 years until his death in April 2021, but her sister, daughter and two of her sons were — very publicly — not so lucky in love.

She famously described as an “annus horribilis” the 40th anniversary of her accession in 1992 after three of her four children’s marriages failed and there was a fire at her Windsor Castle residence.

PRINCESS DIANA’S DEATH
The death in 1997 of Princess Diana, the divorced wife of Elizabeth’s eldest son Charles, inflicted even more damage on the family’s public prestige.

It was the only occasion during her reign when there was any serious suggestion that the monarchy’s days might be numbered. The period was famously captured in the 2006 Oscar-winning film The Queen, when Elizabeth was portrayed as earnest but misunderstood.

But while her children and other royals at times blundered in and out of tabloid headlines with marital woes and public indiscretions, Elizabeth’s own behaviour remained above reproach.

“It’s not that she’s never put a foot wrong, it’s more positive than that — she understands the British people,” said Professor Vernon Bogdanor, an expert in British constitutional history.

The main criticism levelled against her was that she was too solemn, distant and aloof.
Critics said the only time she had shown real emotion in public was when the royals bid a tearful farewell to their magnificent yacht Britannia, months after her stoical response to Diana’s death.

But according to those who worked closely with her, in private she was not the detached public figure most saw, but perceptive, funny, and keenly aware of the nation’s mood.

LESS FORMALITY
In the last 20 years, backed by a far more professional and sophisticated media operation, there was still pomp and pageantry, but less formality around the queen and her family.

Millions turned out for celebrations to mark her 50th, 60th and 70th years on the throne, while her starring role in a spoof James Bond film became the highlight of the opening ceremony of the 2012 London Olympic Games.

In the short sequence she greeted Bond actor Daniel Craig at Buckingham Palace, uttering just four words before visual effects showed her apparently joining him on a helicopter and parachuting into the stadium.

A decade later at the start of a Platinum Jubilee pop concert, she again won huge plaudits for a pre-recorded comic sketch with Paddington Bear, in which she told the famous fictional character that she always kept his favorite snack — a marmalade sandwich — in her ever-present handbag.
The queen was said to crack jokes with world leaders, enjoy an easy familiarity with long-serving Commonwealth heads of government, and relish a wager on race horses. Racing was an enduring passion.

She was also accompanied for most of her reign by her corgi dogs, which earned a reputation for snapping at the heels of royal retainers and were descended from the dog called Susan she received as an 18th birthday gift from her parents.

“What we actually know about the queen is remarkably little,” said Matthew Dennison, a biographer of Elizabeth.

“We know that she enjoys racing. We know that she likes corgis. We know that she prefers blankets and sheets to duvets. But beyond that, we know almost nothing about her.”

During World War Two she learned to be a driver and a mechanic while serving in the women’s Auxiliary Territorial Service.

Her love of the outdoors and of animals was well documented and commentators said she came across as more at home in tweeds than tiaras.

“I do rather begrudge some of the hours that I have to do instead of being outdoors,” she once said.

Prince William’s wife Kate said that behind closed doors, the queen eschewed royal pomp.
“You would expect a lot of grandeur and a lot of fuss … but actually what really resonates with me is her love for simple things, the lack of fuss and I think that’s a special quality to have,” Kate told a TV documentary to mark Elizabeth’s 90th birthday.

CORONATION
Elizabeth became queen in 1952 and was crowned on June 2, 1953, in a televised ceremony in Westminster Abbey, becoming the first queen in her own right since Queen Victoria and the 40th monarch in a royal line that traces its origin back to William the Conqueror in 1066.

“Horrible,” she said of the carriage ride which took her from Buckingham Palace to the Abbey. “It’s only sprung on leather, not very comfortable.”

In September 2015, she overtook Victoria to become the country’s longest ever reigning monarch, an achievement to which she said she had never aspired, and the following year there were more celebrations for her 90th birthday.

She ascended the throne at the same age as Elizabeth I, but while the first Elizabeth saw her country attain the status of an important trading nation in the 16th century, her namesake presided over a Britain slipping from its position as a world leader in industry and technology.

As Britain’s place shifted, so the queen came to stand for unity, and the pomp around her family — with gilded carriages and spectacular royal weddings — a source of national pride for many.

Prince William’s marriage in 2011 to commoner Kate Middleton, which saw more than a million people throng London’s streets and drew an estimated two billion global viewers, was testament to that.

Opinion polls showed the country still largely believed in the hereditary monarch as head of state.

However, with her death, the monarchy’s future is set to face scrutiny like never before. Some commentators say the British public will not feel as strongly towards Charles, and polls suggest he is far less popular.

The decision of Prince Harry, William’s younger brother, and his American wife Meghan, a former actress, to give up their royal roles has also robbed the institution of two of its most popular global figures, while their accusations of racism against the institution linger.

The US sex abuse civil lawsuit against second son Prince Andrew, which he paid to settle, has also inflicted damage on the family’s reputation. Andrew did not admit any wrongdoing in the case. He was not accused of criminal wrongdoing.

FAMILY LIFE AND PUBLIC DUTY
At her side for nearly all her reign was her husband, who she credited with being her “strength and stay.”

“I was blessed that in Prince Philip I had a partner willing to carry out the role of consort and unselfishly make the sacrifices that go with it,” she said in February 2022 when she marked 70 years on the throne.

The couple had four children: Charles born in 1948, Anne in 1950, Andrew in 1960 and Edward in 1964.

She had eight grandchildren and 12 great-grandchildren.

During much of her reign she was often upstaged for attention by three flamboyant women — her popular mother, Elizabeth the Queen Mother, her younger sister Margaret and later Princess Diana.

But the personal sorrow of losing her mother and sister — who died within weeks of each other in her Golden Jubilee year of 2002 — helped the queen establish her own position, leaving her the undisputed matriarchal figure of the nation.

Her working life included thousands of official engagements, varying from trips to schools and hospitals, to the grand ceremonies of state visits and national occasions.

She was famous for wearing brightly colored outfits with a matching hat on royal engagements, to ensure she stood out from the crowds on her many “walkabouts.”

“I have to be seen to be believed,” she is said to have quipped.

She also took her religious duties as Supreme Governor of the Church of England very seriously, saying in 2012 the established Church was “commonly under-appreciated.”

She traveled further than any previous monarch, undertaking more than 250 overseas visits to well over 100 countries. She was renowned for her stamina and began cutting back on a once hectic timetable of foreign tours only as she moved into her 80s.

Even in her 90s she regularly carried out engagements. On one such event at the age of 93, she told officials she was still capable of planting a tree before shovelling the soil into the hole, and it was another two years after that before she needed to use a walking stick in public.

When she was hospitalized in March 2013 with symptoms of gastroenteritis, it was the first time she had needed hospital treatment in a decade.

It was not until October 2021 that she next spent a night in hospital, and she doggedly carried on with light duties even after testing positive for COVID in February the following year.

Her enduring importance was demonstrated at the start of the pandemic in 2020. With an anxious nation under a rigorous lockdown, the government turned to the queen to provide reassurance in a televised broadcast. Usually she gave such addresses only in her annual Christmas broadcast.

The queen had a few notable security scares. In 1981, a British youth fired blank shots near her during the military Trooping the Colour ceremony. Her horse shied but she was unhurt.

The same year, a “severely disturbed” teenager tried to assassinate the monarch while she was on a visit to New Zealand but he missed with his rifle shot.

In July 1982, an unemployed laborer called Michael Fagan made his way into her Buckingham Palace bedroom. He spoke briefly to Elizabeth, who was in her nightclothes, before being hauled off by security guards.

THE FUTURE
“It has been said that ‘the art of progress is to preserve order amid change and change amid order’, and in this the queen is unparalleled,” then-Prime Minister David Cameron said in a speech to parliament in 2012.

“She has never shut the door on the future; instead, she has led the way through it.”
The queen’s family and Britain’s political elite spoke in admiration of her ability to adapt without losing any of the dignity of her role.

The future success of the monarchy could depend on how much Britons admire the next person on the throne.

“Monarchy is only as good as the people doing the job,” said royal biographer Robert Lacey, who was historical consultant to the Netflix drama The Crown.

“We are essentially, when you look at the structure and the way the country runs, a republic with this glorious bauble that we all enjoy on top. And we can always unscrew the bauble any time we want.”

Elizabeth herself set out her life’s goal at an early age.

“I declare before you all,” she said in a 21st birthday broadcast, “that my whole life, whether it be long or short, shall be devoted to your service and the service of our great imperial family.” — Reuters

Britain’s Queen Elizabeth dies peacefully at Scottish home aged 96

JOE GIDDENS/ POOL VIA REUTERS

BALMORAL, Scotland — Queen Elizabeth, Britain’s longest-reigning monarch and the nation’s figurehead for seven decades, has died aged 96, Buckingham Palace said on Thursday.

“The Queen died peacefully at Balmoral this afternoon,” it said in a statement.
“The King and The Queen Consort will remain at Balmoral this evening and will return to London tomorrow.”

Elizabeth’s eldest son Charles, 73, automatically becomes king of the United Kingdom and the head of state of 14 other realms including Australia, Canada and New Zealand. His wife Camilla becomes Queen Consort.

Her family had rushed to be by her side at her Scottish home, Balmoral Castle, after doctors expressed concern about her health. She had been suffering from what Buckingham Palace has called “episodic mobility problems” since the end of last year, forcing her to withdraw from nearly all her public engagements.

Queen Elizabeth II, who was also the world’s oldest and longest-serving head of state, came to the throne following the death of her father King George VI on Feb. 6, 1952, when she was just 25.

She was crowned in June the following year. The first televised coronation was a foretaste of a new world in which the lives of the royals were to become increasingly scrutinized by the media.

“I have in sincerity pledged myself to your service, as so many of you are pledged to mine. Throughout all my life and with all my heart I shall strive to be worthy of your trust,” she said in a speech to her subjects on her coronation day.

Elizabeth became monarch at a time when Britain still retained much of its old empire. It was emerging from the ravages of World War Two, with food rationing still in force and class and privilege still dominant in society.

Winston Churchill was Britain’s prime minister at the time, Josef Stalin led the Soviet Union and the Korean War was raging.

In the decades that followed, Elizabeth witnessed massive political change and social upheaval at home and abroad. Her own family’s tribulations, most notably the divorce of Charles and his late first wife Diana, were played out in full public glare.

While remaining an enduring symbol of stability and continuity for Britons at a time of relative national economic decline, Elizabeth also tried to adapt the ancient institution of monarchy to the demands of the modern era.

“She has managed to modernize and evolve the monarchy like no other,” her grandson Prince William, who is now heir to the throne, said in a 2012 documentary. — Reuters

Jobless rate eases to 5.2% in July

CHEFS undergo culinary training for newly hired crew members at Magsaysay Center for Hospitality and Culinary Arts in Manila, March 25. — PHILIPPINE STAR/KRIZ JOHN ROSALES

THE PHILIPPINES’ unemployment rate in July dropped to its lowest since the onset of the coronavirus disease 2019 (COVID-19) pandemic.

Preliminary data from Philippine Statistics Authority (PSA) showed the unemployment rate — or the share of the unemployed Filipinos to the total labor force — fell to 5.2% in July, improving from 6% in June and 7.2% in July last year.

This was the lowest unemployment rate since the PSA started reporting the Labor Force Survey on a monthly basis in 2021.

Philippine labor force situation

Including the quarterly surveys, July’s unemployment rate was the lowest since 4.5% in October 2019.

In July, the number of jobless Filipinos reached 2.602 million, down by 388,000 from June. It also declined by 627,000 from the year-ago level of 3.229 million.

“We expect more jobs and income opportunities available for Filipinos in the coming months as we move toward the full reopening of the economy,” Socioeconomic Planning Secretary Arsenio M. Balisacan said in a statement.

Mr. Balisacan said this will help blunt the impact of inflationary pressures on the purchasing power of consumers.

“I really think it’s the reopening of the economy that has helped the unemployment rate to grow smaller than the previous month. According to the PSA, we still have about 600,000 plus jobs more to go to be back to pre-pandemic level,” UnionBank of the Philippines, Inc. Chief Economist Ruben Carlo O. Asuncion said in an e-mail.

Among regions, the unemployment rate was highest in the National Capital Region in July at 6.9%, while Cagayan Valley had the lowest at 2.8%.

Meanwhile, job quality deteriorated as the underemployment rate rose to 13.8% in July from 12.6% in June. However, this was still lower than the 21% underemployment rate in July last year.

This was the highest underemployment rate in two months, or since May’s 14.5%.

In absolute terms, the ranks of Filipinos already working but still looking for more work or longer working hours to the total employed population increased by 655,000 month on month to 6.543 million in July. However, this was lower by 2.226 million from 8.769 million underemployed Filipinos recorded in July last year.

The size of the labor force was estimated at 49.994 million in July, up by 412,000 from 49.581 million in June. This brought the labor force participation rate (LFPR) to 65.2% of the country’s working-age population in July, inching up from 64.8% the previous month.

New entrants to the labor force reached 1.289 million in July, larger than the 980,619 recorded in June.

The employment rate reached 94.8% in July from 94.0% in June. This translated to 47.391 million employed Filipinos that month from 46.592 million previously.

The services sector remained the biggest source of jobs in July after recording an employment rate of 58.8%, up from 56.5% in June.

However, the employment rate in agriculture and industry eased to 23.5% in July (from 24.5% in June) and 17.7% (from 19%), respectively.

‘WORRISOME’
Sentro ng mga Nagkakaisa at Progresibong Manggagawa Secretary-General Josua T. Mata said the quality of jobs being generated in the country is “worrisome.”

“What we are seeing are more part-time jobs than full-time jobs […] At the same time, the decline of jobs in critical sectors such as education and health is also of grave concern. After all, we are in the midst of an education crisis even as we have yet to fully end the coronavirus disease 2019 (COVID-19) pandemic,” Mr. Mata said in a Viber message.

“The continuing loss of jobs in manufacturing means that we are missing out on high value-added jobs. Clearly, our industrial development is still badly affected by global supply chain problems. Coupled with high inflation rates, these trends do not augur well for workers,” he added.

Several sub-sectors showed month-on-month job losses in agriculture and forestry (down 263,000 to 9.730 million in July), construction (down 200,000 to 4.523 million), manufacturing (down 152,000 to 3.494 million), mining and quarrying (down 145,000 to 192,711), and education (down 108,000 to 1.389 million).

On the other hand, job gains were recorded in the wholesale and retail trade sector (up 941,000 month on month to 10.665 million in July), accommodation and food service activities (up 227,000 to 1.902 million), and public administration and defense (up 122,000 to 2.886 million).

National Statistician Claire Dennis S. Mapa said in the press conference the quarter-on-quarter decline in manufacturing jobs were mainly those involved in semiconductor devices and other electronic components, ready-made embroidered garments, and bakery products.

“Comparing April and July 2022, we can see that for the past few months the manufacture of bakery products has been decreasing in employment. And a possible reason is because of input cost,” Mr. Mapa said.

In the seven months to July, the unemployment rate averaged 5.9%, lower than 8% in the same period last year.

The underemployment rate also improved, averaging 14.2% in the seven months to July, from 16.4% a year ago.

The employment rate in the January to July period stood at 94.1%, from 92% last year, while the LFPR slightly increased to 63.9% during the same period from 63%.

On average, an employed Filipino worked 40.5 hours a week in July, slightly increasing from the 40.3 hours logged the previous month, but lower than the 41.7 hours in July last year.   

INFLATION IMPACT
Analysts noted that the uptick in the underemployment rate signaled workers are looking for better or more work as they try to cope with rising prices.

“It’s harder for people to move around due to higher gas prices so people would probably prefer to work from home, which is mostly an option with part-time jobs,” Ateneo de Manila University Center for Economic Research and Development Associate Director Ser Percival K. Peña-Reyes said in a Viber call.

“And now we’re seeing inflation spiking up. And reporting to work means mobility expenses,” he added.

Headline inflation rate for July grew to a 45-month high of 6.4% annually as prices for food and transport skyrocketed. It was faster than 6.1% in June and the 3.7% last year.

The transport index, which contributes nearly a tenth to the total consumer basket, grew to 18.1% in July from 17.1% in June due to higher public utility fares.

Trade Union Congress of the Philippines (TUCP) Vice-President Luis C. Corral urged economic managers to “not treat things as business as usual.”

“Globally, many economies are going into freefall or recession. And our export markets, for example, many orders are being canceled. Further, the international export market is softening. And that softening will have major impact on the Philippines. They need to act with a sense of urgency and dispatch. Our economic managers are also saying that our economy has not been impacted dramatically by the dollar, but I don’t think so. Therefore, we push for more quality jobs creation,” Mr. Corral said in a Viber call.

On Thursday, the peso fell to fresh record low against the US dollar for the fifth straight day. The local unit shed 4.5 centavos to finish at P57.18 to a dollar, data from the Bankers Association of the Philippines showed.

Mr. Peña-Reyes said the peso depreciation, food shortages, and the impact of the US Federal Reserve’s aggressive policy tightening as key factors that may affect the labor market in the coming months.

“Domestically, we face rising inflation and monetary policy rates, and the National Government must be able to respond well to economic challenges and set up the economy for a more robust economic recovery from the pandemic,” Mr. Asuncion said. — Ana Olivia A. Tirona

Dollar reserves decline to $99 billion as of end-August

REUTERS

THE PHILIPPINES’ dollar reserves slipped to its lowest level in two years as of end-August, amid the National Government’s debt repayments and the lower valuation of the central bank’s gold holdings.

The gross international reserves (GIR) stood at $98.98 billion as of end-August, slipping by 0.85% from the $99.83 billion as of end-July, preliminary data from the Bangko Sentral ng Pilipinas (BSP) showed.

The foreign exchange buffer as of end-August was 8.3% lower from the $107.96-billion level a year ago, and marked the sixth consecutive month of decline.

It was also the lowest since the $98.95 billion in gross reserves seen in August 2020.

“The month-on-month decrease in the GIR level reflected mainly the National Government’s foreign currency withdrawals from its deposits with the BSP to settle its foreign currency debt obligations and pay for its various expenditures,” the central bank said.

The end-August GIR, which serves as a buffer for liquidity shocks, is enough to cover about 7.1 times the country’s short-term external debt based on original maturity and 4.6 times based on residual maturity.

It is also equivalent to 8.3 months’ worth of imports of goods and payments of services and primary income.

The central bank also attributed the decline in the dollar reserves to the downward adjustment in the value of the BSP’s gold holdings amid a slump in global gold prices.

As of end-August, the BSP’s gold holdings were valued at $8.53 billion, down by 2.6% from the $8.76 billion as of end-July. This was also 6.8% lower than the $9.16-billion level a year earlier. 

Ample foreign exchange buffers protect the country from market volatility and ensure that it is capable of paying its debts in the event of an economic downturn.

The BSP’s foreign investments stood at $84.12 billion as of end-August, up by 0.73% from $83.51 billion in the prior month. However, it is 7.1% lower than the $90.55 billion as of end-August 2021.

Meanwhile, the level of foreign currency deposits plunged by 39% to $1.86 billion as of end-August from $3.08 billion in July. It also declined by 46% from the $3.45 billion as of end-August 2021.

Special drawing rights (SDRs) — which refers to the amount that the country can tap from the International Monetary Fund (IMF), fell by 11% to $3.73 billion as of end-August, from $4.01 billion last year.

In August 2021, the Philippines received $2.8-billion worth of SDRs from the IMF, as part of the latter’s efforts to help countries recover from the coronavirus pandemic.

“The decline in the GIR somewhat correlated with the weaker peso in recent months,” Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in an e-mail note.

Many central banks have deployed the tandem of rate hikes and foreign exchange spot intervention as the US Federal Reserve continued its aggressive monetary policy tightening.

Year to date, the peso has weakened by 12.02% or P6.135 from its P51-per-dollar close on Dec. 31, 2021.

“Nevertheless, GIR is still equivalent to 8.3 months of imports or still way above the minimum international threshold of 3-4 months, thereby could still provide greater buffer/support/cushion on the peso exchange rate vs. any speculative attacks,” Mr. Ricafort said.

Mr. Ricafort said the country’s dollar reserves may still increase in the coming months amid expected rise in inflows from overseas Filipino workers remittances, business process outsourcing revenues, foreign tourism revenues, and foreign investment. 

However, the GIR can be offset by the widening trade deficit and some net foreign debt payments, he added.   

The BSP expects to end the year with $105 billion in dollar reserves and $106 billion in 2023.

As of end-2021, the GIR stood at $108.891 billion, 1.11% lower than the record $110.117-billion level in 2020. – Keisha B. Ta-asan

NEDA proposes changes to arbitration and MAGA clauses in revised rules for BOT Law

Workers are seen at a construction site in Quezon City, Dec. 2, 2020. — PHILIPPINE STAR/ MICHAEL VARCAS

THE NATIONAL Economic and Development Authority (NEDA) proposed new revisions to the implementing rules and regulations (IRR) of the Build-Operate-Transfer (BOT) Law, which reflect the government’s willingness to share the risk in public-private partnership (PPP) projects.

The draft rules, which were uploaded on the NEDA website, showed changes to the provisions on arbitration and material adverse government action (MAGA), which were criticized by some business groups as “anti-market.”

Under the draft, the controversial provision which stated that “acts and decisions of regulators shall not be subject to arbitration” has been removed.

This implied the government is now open to arbitration, provided that it is mutually agreed upon by both parties in the contract.

“In the absence of a mutually agreed upon venue for arbitration in the contract, the venue shall be in the Philippines,” Section 12.23 of the draft rules stated.

The draft rules also changed the definition of MAGA to refer to any act of the “government,” from “Executive branch” in the current version.

“(MAGA) refers to any act of the government which the project proponent had no knowledge of, or could not reasonably be expected to have had knowledge of, prior to the effectivity of the contract; and that occurs after the effectivity of the contract, other than an act which is authorized or permitted under the PPP contract,” the draft rules stated.

Also removed from the MAGA definition was the provision that excluded acts of government agencies, local government units, as well as acts of the Executive branch made in the exercise of regulatory powers, legislative and judicial branches.

“For purposes of the contract, the provisions on MAGA shall also provide for the rules on materiality or amount threshold, nature and manner of recourse, and cap in case of monetary compensation,” the rules read.

Since it took effect in April, business groups have criticized the current version of the BOT IRR, saying it compels private proponents to shoulder more risk while relieving the government of responsibility for delayed deliverables.

The Foundation for Economic Freedom (FEF), the Makati Business Club (MBC), and the Management Association of the Philippines (MAP) had previously called the IRR’s provisions as “anti-market” and “unfair to the private sector.”

“Leaving the 2022 BOT IRR as is may lessen private sector interest in infrastructure, make bids less competitive, and ultimately make infrastructure more expensive for citizens,” the groups said.

Of the current MAGA clause, the FEF previously said that “the less clear the terms of the partnership, the more it encourages politically connected groups to capture regulatory agencies and change terms after awards.”

The Marcos administration is looking to attract more investments in infrastructure through PPPs.

The NEDA is set to hold a public consultation on the draft IRR on Sept. 13. — Diego Gabriel C. Robles

PHL manufacturing growth slows in July

REUTERS

MANUFACTURING SLOWED in July after coming from a high base a year ago, the Philippine Statistics Authority (PSA) reported on Thursday.

Preliminary results of the PSA’s latest Monthly Integrated Survey of Selected Industries (MISSI) showed the factory output as measured by the volume of production index (VoPI) grew by 2.5% year on year in July, but drastically slower than the 534.4% in the same month a year ago.

However, this was higher than the revised 0.7% growth in June.

Factory output growth eases annually in July

This was the second straight month of year-on-year growth since the revised 0.3% decline in May.

Factory output averaged 24.1% in the first seven months of 2022.

In a statement, the PSA attributed the July factory growth to the annual growth seen in 17 out of 22 industry divisions, led by fabricated metal products except machinery and equipment (30.3% from 45.8% in June); machinery and equipment except electrical (29.1% from 46.6%); and wood, bamboo, cane, rattan articles, and related products (28.5% from 31.3%).

Meanwhile, eight industry divisions reported declines in July, led by manufacture of electrical equipment (-52.7% from -46.8% in June), basic pharmaceutical products and pharmaceutical preparations (-18.6% from 10.8%) and tobacco products (-18.6% from -0.9%).

In comparison, S&P Philippines Manufacturing Purchasing Managers’ Index (PMI) stood at 50.8 in July, signaling expansion although slower than the 53.8 reading in June.

The slower annual increase in the factory output in July was due to base effects after manufacturing output posted a triple-digit growth last year, analysts said.

“[Year-on-year] growth rates are distorted because of high base effects,” China Banking Corp. Chief Economist Domini S. Velasquez said in a Viber message. “Sometimes it’s better to look at month-on-month [growth] especially if we need to see the impact of higher prices.”

On a monthly basis, VoPI in July dipped 0.3% from June.

“Moving forward, higher producer prices will continue to affect the manufacturing sector in terms of expansion plans and hiring more workers,” Ms. Velasquez said.

In a phone interview, Philippine Chamber of Commerce and Industry Honorary Chairman Sergio R. Ortiz-Luis, Jr. said high input costs hurt the manufacturing sector although he expects prices to stabilize in the coming months.

Capacity utilization rate in the manufacturing sector averaged 71.3% in July, up from 71.2% in June, and from 65.8% in July 2021. Twenty out of 22 sectors posted utilization rates of at least 60%.

In an e-mail interview, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said that higher utilization rates in all sectors are a good indicator of an improving economy.

“For the coming months, manufacturing capacity utilization could pick up further, as the economy reopened further towards greater normalcy, with Metro Manila and other areas having eased to the lowest Alert Level 1 since March 2022… [T]hereby would allow some manufacturing businesses/industries to operate at higher capacity,” he said.

For the coming months, factory output is expected to stabilize as inflation steadies and production prices drop.

“Similar to PMI, we expect MISSI to stabilize in the next few months. A continued rise in production prices and interest rates will inhibit robust growth until at least early 2023,” Ms. Velasquez said. — Bernadette Therese M. Gadon

Medilines eyes more capital-intensive projects

FERNANDO ZHIMINAICELA-PIXABAY

MEDILINES Distributors, Inc. said it is expanding its consumables business to boost revenue and profits.

“As the company enters its third decade, it is working on expanding its consumable business to drive both topline and profit growth,” the company said in its 20th anniversary statement on Thursday.

This year, the company inaugurated its new warehouse equipped with cold storage for delicate consumables.

“We are also open to new opportunities. It is… Medilines’ goal to maintain dominance in the healthcare equipment market through its continuous participation in major and capital-intensive projects,” Medilines Chairman Virgilio B. Villar said.

Medilines also intends to tap its “vast suppliers and contacts” in the healthcare industry to generate revenues of “up to P2 billion this year” to surpass its financial performance in 2021.

The company aims to “strengthen its role” in the healthcare industry by supporting private and government institutions in procuring medical equipment.

“The company is set to deliver [this year] cancer therapy equipment to Bicol Regional Training and Teaching Hospital in Legazpi City, Northern Mindanao Medical Center in Cagayan de Oro City, and the Philippine Children’s Medical Center, in Quezon City,” it said.

Diagnostic imaging (CT scan, MRI, X-ray), dialysis (dialysis machines), and cancer therapy (linear accelerators) are all types of medical equipment that the company offers.

These equipment help address the most prevalent diseases among Filipinos such as renal diseases, cancer, and cardiovascular diseases, the company said.

“It is important for us to maintain the strong partnerships we have cultivated with our principals,” Mr. Villar said.

Medilines’ attributable net income for the first semester was 19.1% lower at P80.96 million from P100.05 million last year.

Medilines closed 1.37% higher at P0.74 apiece on Thursday. — Justine Irish D. Tabile

Side A’s then and now members share a stage

AFTER reuniting for two online concerts and a series of small gigs, pop rock band Side A returns with its former and current members for a full-fledged concert, Then and Now: Redux 360 Side A Experience, at the Newport Performing Arts Theater at Newport World Resorts, on Sept. 24.

Side A was founded in 1985 and boasts an impressive lineup of musicians who have been with the group since its beginnings at the Hyatt Hotel’s Calesa Bar. Arguably most popular in the 1990s, the band bagged two Awit Awards and had a triple platinum album. For over 35 years, Side A has made hit ballads such as “Forevermore,” “Hold on,” “Eva Marie,” and “So Many Questions.”

The original band roster was composed of brothers Rodel and Naldy Gonzalez (lead vocals, and keyboards and vocals respectively), Mar Dizon (drums), Pido Lalimarmo (guitars and vocals), Joey Benin (bass), and Kelly Badon (lead guitars).

Alongside founding member Naldy Gonzales, the current band members are Ned Esguerra (bass guitar), Yubs Esperat (lead vocals), and Lee Von Cailao (lead guitar).

According to the band it was a collective decision to play together for the Newport show. The idea came up after the band received good reception from fans during their online concerts in 2021.

“It’s not really pre-planned to continue Side A as long as we could. We just love what we’re doing, we continue doing it. And up to now, we’re so fortunate that people still respond to the music,” Naldy Gonzalez said during a press conference at Newport World Resorts on Sept. 5.

“You have to be true to yourself,” former lead vocalist Rodel Gonzalez said about being honest with one’s artistry. “I would imagine if somebody would have a hit song tapos hindi pala niya gusto ‘yun (but the artist does not like it) personally. So, you would have to pretend that that is your genre.”

Despite the COVID-19 pandemic, the band has been busy lately.

Last year, the original members gathered for the Side A Redux virtual reunion concert streamed on KTX.ph. Then in April, original and new members performed in Side A Redux: Sundown Jam, at Silay City, Negros Occidental, where bassist Joey Benin is based. This was quickly followed that same month with a surprise two-night engagement, Redux 360: A Side A Experience, at 19 East Bar in Parañaque City.

The upcoming concert at the Newport Theater will also feature indie singer-songwriter Clara Benin, daughter of the band’s original bassist Joey Benin.

“I feel very honored to be performing, not only with my dad but his band. I grew up listening to Side A and attending their concerts. Not I get to not just be backstage, but be on stage with them,” Ms. Benin said during the press conference.

“To do what you love to do at that moment was more than enough,” Rodel Gonzalez said. “Bonus nalang until now na appreciated pa rin ang Side A (It is a bonus that Side A is appreciated until now).”

Tickets for Then and Now: Redux 360 Side A Experience are now available at TicketWorld and SM Tickets outlets, with ticket prices ranging from P500 to P5,000. For inquiries, contact the NWR National Sales Team  (0917-823-9602, 0917-807-9387, and 0917-658-9378), or call Ticketworld (02 8891-9999), or SM Tickets (02 8470-2222). — Michelle Anne P. Soliman

Justin Bieber PHL concert still on for now, says Ovation

WHILE Canadian pop singer Justin Bieber announced Tuesday that he will be taking a break from his Justice World Tour for a second time due to health reasons, the promoter for the concert’s Philippine leg says that as far as they know, the show here will go on.

On Wednesday, Ovation Productions said in a Facebook post that “We are aware that Justin Bieber has decided to take a break from touring… Our understanding is the Asian leg of the tour is set to continue as scheduled.”

“[W]e wish Justin a speedy recovery and respect his decision to put his health first. We can’t wait to see him back on the road,” said Ovation in their post.

No further details were disclosed.

The Philippine concert is scheduled for Oct. 29, 8 p.m., at the CCP Open Grounds in Pasay City.

Already postponed earlier this year due to Mr. Bieber and members of his team testing positive for COVID-19, the world tour finally launched in March.

He had 70 shows set to run until March 2023 in South America, Asia, Australia, New Zealand and Europe.

In June, the 28-year-old Canadian singer disclosed that he was diagnosed with Ramsay Hunt Syndrome, which left half of his face paralyzed, forcing him to cancel performances in order to recover. He posted a video on Instagram explaining to viewers that he could not smile on one side of his face, but assured fans that he just needed time to recover.

He went on to resume the tour, but after performing in Rock in Rio in Brazil over the weekend, the 28-year-old singer wrote on an Instagram post on Sept. 7 that he would be taking a break.

“After getting off stage, the exhaustion overtook me and I realized that I need to make my health the priority right now. So I’m going to take a break from touring for the time being. I’m going to be okay, but I need time to rest and get better,” he said. “I’ve been so proud to bring this show and our message of Justice to the world.”

He thanked fans for support and prayers and closed the announcement writing, “I love you all passionately!”

Mr. Bieber did not say when he might return to the stage, and his publicists did not immediately respond to a Reuters request for comment. — MAPS with a report from Reuters

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