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Building on the momentum of success at the Tokyo Olympics

By Michael Angelo S. Murillo, Senior Reporter

The 32nd Summer Olympics in Tokyo turned out to be an edition to remember, with the multi-medal haul, including a first gold, a watershed moment for Philippine sports.

As the pandemic-hit Olympics drew to a close on Aug. 8, the Philippines held joint 50th place in total medals won — boosted by the gold won by weightlifter Hidilyn F. Diaz — a far cry from previous Olympiads in which the country hardly figured in the race.

The Philippines also won two silver medals (Nesthy A. Petecio and Carlo Paalam) and a bronze (Eumir Felix D. Marcial) from the boxing team.

It was the first multi-medal showing for the Philippines since the 1932 Olympics in Los Angeles, where the contingent brought back three bronze medals.

“Well, definitely this speaks volumes about our capacity in terms of sports performance at the elite level. The road was not easy for the Philippines but I think because of the positive things that happened in the previous years, this was the result of it,” said Francis Carlos B. Diaz, a national team coach and dean of the University of the Philippines College of Human Kinetics, in an interview with BusinessWorld.

The UP dean believes the partnership between the government and private institutions, the effort to give elite athletes access to international training and competition, and providing for the athletes’ needs helped contribute to Team Philippines’ success.

He also noted the athletes’ determination to do well in the Olympics, which almost did not happen because of the pandemic, and “extrinsic motivations,” in the form of incentives both in cash and in kind.

“Every Olympics we qualify some athletes and we’re always hopeful. But we saw (results) from Day One and it’s truly inspirational to the Filipino nation. And it’s not just the winners but everyone who competed there,” he added.

Mr. Diaz, who served as the chef de mission for the Philippine delegation to the Tokyo Paralympic Games, also in August, said the Philippines’ breakthrough showing in the Olympics should be taken a starting point for future campaigns in order for the progress made not be wasted.

He said at least two areas within his area of expertise are likely to be impacted by the recent Olympic success — academic and administrative.

“As an academic, as a PE (physical education) teacher, this gives us hope to really motivate and provide our students with the best programs possible for them,” he said.

Mr. Diaz said appreciation for physical activity must start at a young age.

He said PE in the grade school level is currently allotted 40 minutes a week, since it is lumped under MAPEH (music, arts, physical education and health), which he believes will not do.

“If you look at the countries with a lot of medals, all of them start at a young age. Physical activities take place every day as provided by their schools’ PE programs. So we have to have a new (approach to) that,” Mr. Diaz said.

Administratively, meanwhile, the country’s sports leaders are recognizing the lessons from the Tokyo campaign.

“One standout lesson from Tokyo was the importance of providing holistic support to our national athletes,” he said.

The Philippine Sports Commission (PSC), per the data it provided, has released some P2 billion since 2017 for the national team, covering, among others, the foreign exposure of the Olympians and those who vied for Olympic spots.

The gold medalist, Ms. Diaz vouched for how steady support for athletes goes a long way.

“So that we can win more gold medals, the athletes need all the support they can get. I hope our sports officials have realized that,” she said during an online forum by the Foreign Correspondents Association of the Philippines.

Ms. Diaz went on to say that support should be in tune with the times and suited for what athletes truly need, and not just an exercise in saying that “support was given.”

“They should look at what the athletes really need, what works at the present. Sports leaders should not settle for just what they know, they have to make an effort to learn and take note as well of the needs of a particular sport or an athlete,” she said.

The message has not been lost, with the PSC acknowledging that the road to Tokyo could serve as a blueprint.

“One aspect is the preparation of the athlete, not just talent or having an excellent coach. They also need extensive international exposure, and the PSC spent an enormous amount on these athletes for that,” PSC Chairman William I. Ramirez said in a media forum.

Mr. Ramirez cited Ms. Diaz’s team, collectively known as “Team HD,” as one example.

For the Tokyo Olympics, Ms. Diaz had two coaches for weightlifting and strength and conditioning, a sports nutritionist and a sports psychologist, and also practiced yoga as part of her training. She said the support helped her face the challenges she encountered along the way.

And seeing the result, Mr. Ramirez said the PSC is inclined to continue on such a tack and add to it moving forward, saying: “It gives everyone more impetus to plan and start their preparations.”

Mr. Ramirez said the PSC will soon meet with its counterparts in the Philippine Olympic Committee to discuss the direction they will take, including the need to ask for more funds from the national government and more scientific training for the athletes.

Mr. Ramirez said the blueprint for future competition includes the next Olympics in Paris in 2024 and beyond, as well as other international competitions like the Southeast Asian Games and Asian Games.

PRIVATE SECTOR
UP’s Mr. Diaz said for sustained development and success, private institutions must be continuously encouraged as the government cannot do it alone.

He believes with Olympic success, private companies have an enhanced appreciation of what Filipino athletes are capable of, given the proper support.

The partnerships that national sports associations (NSAs) struck with private companies did wonders.

“Private sector support was very critical,” Mr. Diaz said.

He said sports organizations, and even athletes themselves, must present a compelling case to entice private groups to come on board.

“The NSAs have to exert the effort for the private sector to buy into their respective programs. They have to show they are guided by the right principles, governed properly and have a well-thought-out program,” he said.

Officials of the MVP Sports Foundation, Inc. (MVPSF) agree.

“This is a collective effort —the athletes must perform better because we can only go so far in terms of support,” MVPSF Chairman Manuel V. Pangilinan said in a television interview.

“We’re enablers only but the guy who lifts the weights, the guy who goes to the boxing ring, the guys who go to the basketball court, they must perform because that’s on them, we can only do so much. So they must perform better and they must win because it generates its own virtuous cycle,” he added.

The MVPSF, established 10 years ago, has been in many ways the public face of corporate support for sports. One of its goals has always been to help the Philippines win its first Olympic gold medal.

Since its inception, the organization has poured in at least P2 billion, apart from personal investments made by its officials.

In Tokyo, MVPSF was well represented as the majority of the athletes who competed were supported by the foundation in one form or another, including Ms. Diaz and the boxing team.

Seeing its efforts make significant headway, the MVPSF is now more determined to continue what it started.

Its plans now include establishing a Center for Sports Excellence, converting a 15-hectare property where the First Pacific Leadership Academy currently stands in Antipolo City to a sports center.

“It already has the hotel facilities there, rooms, and then space to build badminton courts, boxing gyms, basketball courts. And we’ll have sports psychologists, trainers, coaches living there as well, so it will effectively be a National Sports Center,” Mr. Pangilinan said.

Mr. Pangilinan is proposing an organization, Philippine Business for Sports Development (PBSD), to further augment private sector support for Filipino athletes.

“Scale of support will likely escalate and I think we should open up,” Mr. Pangilinan said.

“We should have a Philippine Business for Sports Development, invite major companies, sponsors, that might be willing to support,” he added, taking note of its impact on the training of elite athletes and grassroots sports initiatives.

More private sector support is something Skate Pilipinas, the federation for skateboarding, would welcome.

“Aside from having more skate parks, having clinics in different parts of the country to bring the sport to more people, to certify more coaches and judges, and hold events are very important to grow the sport. To help us do that, we will need the help of the private companies and sponsors,” national team coach Dani Garcia said at a media roundtable.

Skateboarder Margielyn Didal made history after competing in skateboarding in the sport’s Olympic debut in Tokyo. She finished seventh in the finals.

To be discussing Olympic success and catch a glimpse of potential upside moving forward is a welcome change, Mr. Diaz, expressing hope that all stakeholders work together to sustain the gains.

He said challenges still lie ahead, especially with the pandemic still very much a factor, but he believes collectively the community can manage the difficulties.

“There will be difficulties, of course. But I think during this pandemic, everybody learned how to adapt to the new normal. We just have to continue finding ways to help our athletes advance and Philippine sports in general. We have raised the bar in Tokyo and it’s going to be a big letdown if we do not follow up on that,” Mr. Diaz said.

Mr. Pangilinan, for his part, said whether in life or in sports, people must forge ahead.

“The essence of sports is to face up to the challenges and proceed with it. That’s the lesson for us,” he said.

A resilient food supply starts with modernization

JCOMP-FREEPIK

Aside from farming, upgrades also needed for logistics, incentives

By Kyle Aristophere T. Atienza, Reporter

When many parts of the country, including some of the biggest markets, went into lockdown in March 2020 to contain the coronavirus outbreak, farmers, even the ones outside the quarantine zone, had to dump their crops by the roadside for lack of a way to bring the produce to where the buyers were.

Later on, the community pantry movement sprang up, primarily as a means of providing free food to those in need, and incidentally offering itself as a potential solution to food waste.

The two incidents, some months apart, one gloomy and the other heartening, both paint a picture of food insecurity, a long-running problem that has stumped those who govern, and plagued those who regularly must do without.

According to a rapid nutrition assessment survey conducted by the Department of Science and Technology-Food and Research Nutrition Institute between Nov. 3 and Dec. 3 last year, more than half of all Filipino families had experienced moderate to severe food insecurity during the crisis.

Of the 5,717 households surveyed, just under 72% were forced to borrow money to obtain food, while 66.3% asked for food from their relatives, neighbors, and friends. The survey found that 56.3% of respondents reported having problems accessing food during the community quarantine period due to a lack of money (22.1%), limited public transportation (21.6%), loss of livelihood (19.5%), and limited food stores (10.8%). It added that 5.1% of the respondents were seniors who had no other family members to buy food for them.

The pandemic disruptions affected nearly every aspect of the agro-food system, particularly the farming and fisheries industries, which employ about 30% of the workforce. Now the question is whether the disruptions may have made it more difficult for countries like the Philippines to achieve their development goals.

The fear is that the interplay of the coronavirus and other external shocks, as well as overarching issues such as climate change and population growth, may have clouded the outlook for one of the fundamental functions of an economy, which is to provide food in order for people to sustain themselves.

The Philippines has no choice but to make its food systems more resilient to future shocks, said Ayn G. Torres, an agricultural economist and a researcher at World Agroforestry – Philippines.

“A resilient food system should ensure that the supply is accessed equitably at reasonable prices, while (ensuring) fair income and livelihoods for our farmers and producers,” she said.

DIGITAL SOLUTIONS AND BIG DATA
Ms. Torres said the digitization of the value chains “can be considered one of the long-term measures” to make the food system more resilient and adaptive to the changing environment.

Bringing supply to where the demand is has become challenging during the pandemic, Ms. Torres said, noting that digital solutions have mitigated the disruption somewhat, enabling producers and consumers to interact more directly, thereby keeping markets functioning.

Online platforms that connect producers to buyers sprouted during the crisis when the ability to conduct face-to-face transactions was compromised. In March 2020, social enterprise Agrea launched an online ordering service linking consumers in the capital region with farmers.

“Our COVID-19 experience has seen a digital shift in our economic transactions,” Ms. Torres said. “Similarly, we can start rethinking our supply chain through this lens.”

“One thing we have to note is that the food chain consists of different nodes where multiple actors play a role,” she added.

Ms. Torres said emerging technologies can address bottlenecks in productivity and post-harvest handling, improve market access and management during lockdowns, ensure food security, and strengthen climate resilience.

Big data will play a major role in making the value chain more efficient and responsive, she said. When so enabled, farmers will be empowered to make risk-based decisions based on the best information available about growing methods, inputs, and markets.

The killer apps for big data in agriculture are tools for achieving unprecedented precision in where and when to farm or what to plant; and greater accuracy in prediction, facilitated by satellite imaging to give farmers the ability to make climate-sensitive decisions. Big data can tease out rainfall patterns and water cycles, making for actionable forecasts.

Drones can also be used to monitor the health of crops and the land even during rainy days. Real-time data from these tools can also lead to more informed decisions about the effective use of fertilizers, in the process improving yields while reducing their environmental impact.

The United Nations Food and Agriculture Organization (FAO) estimates that the application of fertilizer in the Philippines grew 1,000% between 1961 and 2005, which means the practice is now fairly widespread, making the main problem how fertilizer can be used to greatest effect.

Another key input, pesticide, is also likely to be put to better use with the help of big data, which can help determine “what pesticides to apply, when, and how much,” according to Talend, a French software company.

“Big data can truly revolutionize the agricultural sector only by having a cloud-based ecosystem with the right tools and software to integrate various data sources,” Talend said. “These tools should be able to consolidate data on climate, agronomy, water, farm equipment, supply chain, weeds, nutrients, and so much more to aid the farmer make decisions.”

Ms. Torres said big data can address supply chain problems by “improving the coordination systems for food logistics.” These tools can also be used by farmers to study the impact of border closures and other logistics challenges, she added.

Innovation in finance also means farmers can gain greater access to credit, while social protection mechanisms can reach them more readily, Ms. Torres said.

The digitization of the credit evaluation process now features the employment of algorithms to map crop sustainability, enabling lenders to anticipate the issues faced by small-scale farmers and “understand how risky a farmer’s production is,” Roy Parizat and Heinz-Wilhelm Strubenhoff of the World Bank said in an article published by the Brookings Institution.

The process of onboarding farmers for financial services can be streamlined into a mobile phone-based application to reduce transaction costs, they said.

“The capacity of the state’s ICT (information and communications technology) should beready to adapt to shifts in the food system,” Ms. Torres said.

The digitization of agriculture and its supporting ecosystems will require, among others, strong partnerships involving governments, businesses, and farmers, as well as a regulatory environment to ensure that technology remains affordable and accessible, Gilbert Fossound Houngbo of the International Fund for Agricultural Development said in a commentary published by the World Economic Forum.

“The private sector should be encouraged to advance, adopt, and re-engineer technologies for, and in collaboration with, small-scale farmers,” he said. “Investing in digital agriculture today offers the promise of a quadruple return.”

“Even before the pandemic, the economic opportunities that digital markets offer have been enormous,” said Arsenio M. Balisacan, chairman of the Philippine Competition Commission (PCC) and the government’s former chief economic planner.

Due to the considerable market power of some digital platforms, “monopolization and abuses of dominance are high risks, as demonstrated by some recent cases in the US, EU, and even the Philippines,” he said.

With the acceleration of the digital shift, it has become even more crucial for the PCC to be “vigilant in monitoring developments in digital markets and boost its technical capacity to safeguard competition in these markets,” Mr. Balisacan said.

Doing so will protect consumers and small businesses who depend more on these technologies and maximize the growth potential of the digital economy, he added.

“As we know it, ensuring competitive processes will build a robust foundation for sustained and inclusive growth, which is necessary for the strong recovery of our economy.”

ADDRESSING POST-HARVEST LOSSES
In properly-functioning food markets, where information flows freely and where there are no barriers to entry and to the movement of goods and services, goods will naturally flow from areas with surpluses to areas experiencing shortages, Mr. Balisacan said.

But the Philippines is still far from achieving that. Chief among the problems inherent in getting from point A to point B is ensuring that enough of the crop survives in order to be sold.

Postharvest losses of major farm commodities in the Philippines range between 10 and 50%, according to the Philippine Center for Postharvest Development and Mechanization.

“In the Philippines, postharvest losses of commodities represent a very significant loss…” it said. “This means that 10 to 50% of all the land, inputs, and labor used to produce the commodities go to waste. And it also means that all of us… have a lot of work to do.”

The global average for postharvest losses is around 14%, according to the FAO. In all production stages, about one-third of the world’s food is wasted, it said.

To address such waste, sensors can be deployed to measure properties of fruit to determine their readiness for delivery to various destinations, according to a study by Jean Frederic Isingizwe Nturambirwe and Umezuruike Linus Opara, postharvest technology experts at South Africa’s Stellenbosch University.

The data generated by the sensor data can then be reflected in packaging materials to provide indications of their state of freshness. These sensors can also send data to a command center that can be accessed by both producers and consumers.

Investment in cold-chain facilities and equipment that processes produce on-site or as near to the production areas as possible can also cut food waste and ensure that there is sufficient food dispatchable to areas experiencing food insecurity, Ms. Torres said.

“It is important to boost postharvest support while there are bottlenecks in the supply chain and there are extreme disruptions in the mobilization of supply,” she said.

Such investments will increase the likelihood that surpluses can be moved to areas suffering from shortages and to “prepare (for) seasons of the year when supplies are low,” according to Michael L. Ricafort, chief economist at Rizal Commercial Banking Corp.

“Processing facilities would enable much longer shelf life for manufactured agricultural products that could also be sold locally as well as in export markets,” he said.

The private sector and government should also collaborate in putting up common warehouses accessible to rural farms and linked to digital ledgers, giving farmers access to multiple markets while reducing marketing costs.

OVERCOMING THE DIGITAL DIVIDE
Emerging technology and digital infrastructure designed to streamline the supply chain may have unintended consequences and negative trade-offs, said Terry L. Ridon, convenor of infrastructure think tank InfraWatchPH.

Many Filipinos still cannot access internet service of sufficient quality, and may not even know how to use it. The digital divide can create information asymmetries that could do more harm than good. Meanwhile, weak data management can lead to the misuse of farmers’ business and personal information.

Mr. Ridon said the government needs to accelerate public access to digital and physical infrastructure to avoid such information asymmetries, which could further disenfranchise the already marginalized members of the agro-food system.

“Governments need to define what truly matters in reforming the agriculture sector,” he said, noting a need to determine “which technologies are most appropriate to implement in this sector.”

“It is our view that what matters the most is ensuring the best and fairest prices to both consumers and producers,” he added.

The pandemic is forcing the world

REUTERS

to reconsider its relationship with the built environment

By Patricia B. Mirasol

“Now is the time to rethink what we want city centers to be like, to repurpose prime urban real estate for mixed use, and build urban areas with a focus on community, accessibility, inclusion, and sustainability,” said Paul D. Priestman, founder and chair of PriestmanGoode, a design consultancy out of the UK that counts Airbus SE and Hong Kong’s Mass Transit Railway as its clients.

“I’m personally interested in opportunities for designers to work with local governments and cities to regenerate and repurpose spaces to be more people- and planet-focused.”

For architect and urban planner Felino A. Palafox, Jr., tactical urbanism is the way to go. “We’ve gone from green to greed to gridlock,” he told BusinessWorld in a Zoom call. “We need more open spaces, and interconnect this fragmented metropolis…with more pedestrian bridges, more waterfront promenades, more bike lanes.”

Mr. Palafox noted that Mayor Josefina “Joy” Belmonte-Alimurung of Quezon City has started practicing tactical urbanism, which is an approach to neighborhood building using short-term, low-cost, and scalable interventions for long-term change.

“Mayor Belmonte is doing tactical urbanism, just like the lady mayor in Paris is doing to make Paris a 15-minute city,” he said, referring to an urban design approach that aims to improve quality of life by creating cities where everything a resident needs can be reached within 15 minutes by foot, bike, or public transit.

The Quezon City government, according to Mr. Palafox, is collaborating with the private sector to interconnect the various parks in the city (La Mesa Ecology Park, MWSS-Balara Park, Ninoy Aquino Park, and Quezon Circle Park) with walkways and bicycle lanes. All parks were master planned by Palafox Associates.

“I really like how the LGUs (local government units)and National Government agencies put in the effort in understanding the needs of bike commuters,” said King Emmanuel C. Filart, co-founder of bike advocacy group Cycling Matters, commenting on the improved quality of bike lanes in the country. “These collaborative efforts look very promising.”

Mr. Filart noted, however, that there is still “a bit of doubt whether these wonderful changes are here to stay.” Some similar efforts in the past, he said, have been in the spirit of “masabi lang na mayroon (for the sake of compliance).”

This mindset has given rise to the broken bollards, fallen bike lane barriers, missing traffic signs, and faded road paint that we live with today, he told BusinessWorld.

ROBOTS AND UV LIGHT
The coronavirus has pushed health and wellness to the top of the priority list when it comes to design briefs. Solutions such as elevator air purifiers and self-disinfecting handrails are already available locally for companies to achieve this end.

In Laguna, sanitation robots are used in an automotive manufacturing facility to clean surfaces and the surrounding air. The Keno UV-C robot, according to its manufacturer Robotic Activation, Inc., uses ultraviolet (UV) radiation to kill pathogens.

The UK also widely uses UV cleaning in aviation and urban transit. “In London, for instance, over a quarter of the escalators on the London Underground network have already been fitted with UV light sanitizing devices, which clean the handrails continuously throughout the day,” Mr. Priestman said.

There is also a resurgence in the use of natural antimicrobial materials — like brass and copper — for their aesthetic and hygiene properties, he told BusinessWorld. PriestmanGoode is working with suppliers on self-cleaning materials with built-in anti-microbial properties, and working towards making these certifiable for transport.

A GREENER WORLD
The post-pandemic world will also be more sustainable — as consumer sentiment from surveys show that more people are paying attention to how their individual choices impact the environment.

This move toward green is reflected on a larger scale by industrialists like San Miguel Corp. President Ramon S. Ang, who is planning future airports and road networks with sustainable infrastructure in mind.

At the individual level, there’s Carvey Ehren R. Maigue, a Filipino inventor who won the first James Dyson Award for Sustainability in 2020.

Mr. Maigue, who studied electrical engineering at Mapua University, found a way to convert a plastic-like material from rotting produce to create renewable energy. He is now working with a European car manufacturer and a ship builder in the Asia-Pacific to incorporate his invention for their windows and hulls, respectively. A partner company is also looking into integrating Mr. Maigue’s technology with the power systems of a building.

LGUs that aspire to be smart cities, Mr. Palafox added, need to understand what that definition also entails.

“A smart city has smart technology, but smart technology is only a tool for good governance,” he said. Cities that convert designated open spaces into concrete structures, and cities that have corruption embedded in their business processes, he pointed out, cannot be considered smart.

FOR THE OLD AND THE POOR
The United Nations says that by 2050,one in six people in the world will be over the age of 65. “Think about designing for your grandmother or grandfather. When designing a new product, ask: can they use it? That’s what we need to constantly reference,” said Mr. Priestman in a B-Side episode.

Aside from making room for the elderly, the post-pandemic world should also make room for the marginalized. People who live in cramped, poorly ventilated living spaces are more susceptible to infectious airborne diseases bedeviling the world now, like coronavirus disease 2019 (COVID-19) and tuberculosis.

As Dr. Marve Duka-Fernandez, who is coordinating a project in Tondo for Médecins Sans Frontières(Doctors Without Borders) said: “There are no two ways about it: they need to live in better housing! People left to live in such conditions will always be at high risk for recurring infections.

Mr. Palafox, for his part, talked about long-term vision by comparing the fate of blueprints in Dubai, where he worked as a 27-year-old senior architect and planner for the government of Dubai, and Manila.

“We were already designing the largest airport, the largest man-made harbor back in the late 1970s,” he said. “That’s why I call my plans in Dubai ‘snapshots to the future,’” because I knew (the leaders) would implement them.”

Plans for Manila, on the other hand, are “postcards from the future,” because of the uncertain timeline as to when — or if — they will be implemented. “I like paraphrasing Winston Churchill: we shape our environment, then our environment shapes us,” Mr. Palafox said.

NFTs as the future of digital entertainment

REUTERS

By Brontë H. Lacsamana

PRIOR to the pandemic, barely anyone knew of non-fungible tokens (NFTs). These digital assets — like bitcoin and ether — are traded using blockchain technology. But unlike cryptocurrencies, they are unique (hence non-fungible).

NFT art and gaming items use digital certificates to authenticate rare online assets and track their movements. This concept, a novelty for most people, has seen an influx of activity from artists and gamers who have learned to utilize the technology to their advantage.

NFTs gained mainstream awareness thanks to the Beeples of the world, whose digital artworks were auctioned off for millions of dollars. Local artists, too, have capitalized on this new venue for selling their work, albeit at more modest prices.

“Having a marketplace where digital art could be traded like physical art is a crazy idea, honestly. It’s awesome to have an exchange of value for your art,” said Peter Corazo, a Cebu-based artist known online as xlvrbk (pronounced Silverback), who sells his 3D and virtual reality (VR) pieces as NFTs on the blockchain.

With guaranteed ownership and authenticity, plus a purely digital nature, NFT art attracted people like xlvrbk, who then found communities in Twitter and Discord. These digital spaces, tight-knit and constantly up to date, gave artists options outside the traditional industry path, with art collectors directly contacting artists online.

GAMING SCHOLARS
On the gaming side, the Philippines became a hotspot for blockchain-based games due to people seeking out alternative income during the pandemic. In a play-to-earn game called Axie Infinity, players purchase NFTs in the form of pets called Axies, which they use to win battles and reap items that can then be traded or sold for Ethereum.

A rise in demand in early 2021 triggered a rise in prices, making it more expensive for new players to join. Enter Yield Guild Games (YGG), a decentralized autonomous organization that invests in blockchain games and NFT assets, and loans out Axies to “scholars” who want to learn to play and eventually earn.

NFT earnings from these scholars are split three ways — among the scholar (70%), Yield Guild (10%), and the community manager who recruited and trained them (20%).

As of mid-August, YGG reported that its scholarship program had 4,600 players, coming mainly from the Philippines, Indonesia, India, Venezuela, Peru, and Brazil. Earnings rose to the equivalent of $3.26 million in July, the highest monthly earnings thus far.

INTERACTING LIKE ‘IRL’
NFT communities in the Philippines are being integrated into their “traditional” counterparts.

This May, Art Fair Philippines dedicated an entire section to NFTs, acknowledging the growth of the country’s crypto community. The online edition of the event gave crypto artists a platform to share their thoughts on the development of NFT art.

During the fair’s run, digital artist xlvrbk organized a Filipino crypto VR art show: “It’s easier to organize compared to real-life shows because the logistics are way easier. We had about a dozen artists and a really fun opening night where people showed up at the VR space and interacted with each other, sort of like an IRL (in real-life) gallery,” he said via e-mail.

Both events made up for the inability of artists and art enthusiasts to come together at physical fairs and real-life galleries due to quarantine restrictions. The digital space, with all its innovative possibilities, gave people the chance to browse rooms filled with installations, paintings, pictures, and videos.

A downside to this art scene, however, is burnout. At the fair, the conversation among crypto artists touched on the importance of self-marketing and socializing online in spaces like Narra Art Gallery, an NFT art hub co-owned by Colin Goltra and YGG’s Mr. Dizon, in order to sell their art.

“Putting yourself out there, sometimes that kind of pressure can get to you if you’re not used to things like that,” said Michelle “Shelly” Soneja, an art director for mobile and blockchain game studio Altitude Games, who got into NFT art in 2020. “There’s so much new technology every day, every hour.”

ALTERNATIVES AND OTHER APPLICATIONS
People who want to mint assets — or create NFTs — have several blockchains to choose from. Minting fees, known as gas fees, can cost P2,000, according to the crypto artists on the Art Fair panel.

While Bitcoin and Ethereum are well-known blockchain networks, alternatives like Tezos, Polygon, and Polkadot charge less for minting and have a smaller carbon footprint.

“Just by relative scale, (Tezos) consumes — some estimates put it at — two million times less energy than Ethereum to conduct the same kinds of transactions,” said Marissa Trew, marketing manager of TZ APAC, a Singapore-based blockchain consultancy firm, who explained why “Proof-of-Stake” blockchains like Tezos are more energy efficient than their “Proof-of-Work” counterparts in a B-Side episode.

Though NFTs received widespread attention for art with million-dollar price tags, it’s everyday artists and gamers who are keeping the community alive by turning to the digital space to make a living. YGG went beyond play-to-earn gaming by opening its own market, allowing members to trade digital assets.

By encouraging financial literacy, many have become entrepreneurs themselves by learning to trade assets or find the right timing to invest, said Beryl C. Li, YGG co-founder, in a B-Side episode in July.

For Ms. Trew of TZ APAC, which has invested in the Tezos ecosystem in the region, the blockchain has potential for business-to-business transactions like licensing, supply chain management, and invoicing.

“NFTs have utility far beyond being a digital asset. There’s a large enterprise use case that’s being developed,” said Ms. Trew. “There’s a lot of actual B2B use cases that NFTs are able to provide well beyond the creator economy in the digital space, in terms of music, art, and collectibles.”

Fintech’s key roles in achieving financial inclusion

FREEPIK

By Bjorn Biel M. Beltran, Chelsey Keith P. Ignacio, Special Features Writers,
and Adrian Paul B. Conoza, Special Features Assistant Editor

ONE OF the most notable shifts seen during the coronavirus disease 2019 (COVID-19) pandemic is the growing use of digital payments. Although cash and coins are still used, electronic wallets and digital services were further appreciated for the conveniences they provide.

This shift was highly driven by a bigger one that the pandemic caused to accelerate — digitalization. In particular, financial technology or fintech has played a much bigger role in connecting consumers with banks, merchants, and other financial services providers.

From the perspectives of consultancies, as digitalization pushed further forward amid the pandemic, fintech’s growth is imminent.

V Ram, vice-president and chief technology officer at Tata Consultancy Services, noted that by enabling more companies and financial institutions to consider digital platforms, the pandemic has pushed digital transformation by several orders of magnitude.

“The pandemic has pushed customers and companies over the digital technology tipping point and transformed adoption for many businesses into a priority. In just a few months, the crisis has accomplished years of digital transformation in most banks and companies by five to seven years,” he said during the first of a three-part BusinessWorld Insights online forum series themed “Fintech for a Financially Inclusive and Resilient Economy.”

He added that new opportunities for the finance sector are opening as most companies across the world has put up at least temporary solutions to meet newly scaling demands, much more than what they thought would be possible.

“As it was, the world continues to enjoy a modicum of entertainment, even if it was not in their regular settings like in the cinema. Trade and commerce also held up pretty well from short-term impacts thanks to fintech. Now is the chance for us to accelerate and take things forward. This is where we see fintech reshape the financial ecosystem,” he said.

Moreover, Frost and Sullivan ICT and Fintech Head Shailendra Soni noted that while the financial revolution started slightly late in the Philippines compared to its neighboring countries, the country will certainly catch up.

“There will be more and more [fintech] services launched [that are] particularly putting consumers and enterprises at the center to make them pay better, save money, invest money, and insure themselves,” Mr. Soni said during the second part of the online forum.

As people are beginning to experience these digital payment services and eventually realize their benefits, Mr. Soni added, the migration to more fintech-related solutions will also start.

“I believe there is going to be infrastructure on the Internet that will become much better. There will be policies, rules, and regulations in place that will further accelerate the overall adoption of fintech. There’s no U-turn; it’s going to grow,” he said.

Alongside such foreseen growth, fintech is expected to perform significant roles in further enabling financial inclusion in the country, empowering businesses, and expanding the access of basic financial services.

Financial experts are seeing in fintech solutions new opportunities to push the country closer to the goal of full financial inclusion, as the first part of the BusinessWorld Insights series tackled.

Bangko Sentral ng Pilipinas Assistant Governor Edna C. Villa said that while enlarging the economic pie is a necessary condition to reach the vision of creating a high quality of life among all Filipinos, it is not sufficient.

“The larger economic pie must be available at least for more, if not for all,” she pointed out.

Such ideals are the foundation for the BSP’s Digital Payment Transformation Roadmap for 2020 to 2023, which seeks to develop a digital payments ecosystem that targets current consumer and business needs to boost digital payments. One of its key targets is expanding the financially included to 70% of Filipino adults.

“We all know that payments is the most basic and most used financial service. Everyone uses it. It stands to reason therefore that there ought to be greater incentive to innovate in the payments sphere,” she said.

The transformation road map includes the acceleration of EGov Pay, the digital government collection system for taxes, licenses, permits, etc., established for secure, contact-free channels for Filipinos to transact with the government.

“The pandemic undoubtedly helped accelerate the preference for digital transactions. We are convinced that the trend will continue even post-pandemic,” Ms. Villa said. “If we are to maintain the momentum, however, we need to be deliberate in innovating to pave the way for greater financial inclusion. For our part, the BSP will continue to provide what we believe is an enabling regulatory environment for fintech innovations.”

Sparky Perreras, co-founder and CEO at digital banking solutions provider PearlPay, Inc., said that fintech companies have an opportunity to position themselves as the bridge to connect rural communities with the greater financial world.

“When COVID-19 struck, the biggest problem in terms of the business challenges for community-based financial institutions is in disbursing the loan proceeds. Because they don’t have the digital channels in place to disburse the loan proceeds for their existing customers due to the lockdown, their business for loans has been badly affected, as loan customers are forced to visit physical rural branches or microfinance institutions just to receive the loan proceeds,” he said.

“That’s one problem that we are passionate to solve by enabling these rural banks and microfinance institutions to join the digital revolution and digital economy.”

Maria Lourdes Jocelyn Pineda, president of digital-only bank Tonik, further emphasized that the country should take this chance to push towards the ideal of financial inclusion.

“The need for financial inclusion has never been better understood as it is in the present. Most economies are radically transformed because of the pandemic,” she said.

Ms. Pineda further noted that as consumer needs have evolved, a pressing need arises for the financial sector to truly embrace customer centricity. “The new normal has efficiently curved the expectations of the banking customers, who now seek and choose institutions that they can entrust their money in a relationship built on mutual trust, transparency and benefits of the customers,” she said.

Furthermore, Ms. Pineda added that the Philippines is in no better position to take advantage of these opportunities, due to the unique characteristics of the Filipino population regarding digital adoption and literacy.

“As the country is the world’s leader in internet and social media usage, we believe that the Philippines is ripe for becoming a real leader in digital banking. To edge closer to a fully digitalized and cashless society, we must begin to listen and to address the customer need for a more inclusive and accessible way in banking that lets them grow their money the way they want to,” she said.

In addition, Lito Villanueva, chairman of FinTech Alliance Philippines, recognized that the fintech industry has been facing and dealing with the challenge of getting more Filipinos banked, especially as the 2019 Financial Inclusion Survey of the BSP showed that the number of unbanked Filipino adults was estimated at 51.2 million, out of a total adult population of 72 million two years ago.

“[W]e have seen this as a welcome challenge for the fintech industry to address this, especially now that going digital became the lifeline of the ordinary Filipinos to survive during the pandemic,” Mr. Villanueva said during the third leg of the online forum series.

He added that the central bank’s vision of a digitally and financially inclusive Philippines, enormous as it may seem, is nonetheless within the country’s reach, “especially with current fintech innovations and solutions being implemented nationwide.”

SUPPORTING LARGE AND SMALL BUSINESSES
Fintech is also seen to serve as a reliable partner for businesses, from big enterprises to micro, small, and medium enterprises (MSMEs), as more consumers make use of fintech through digital services.

During the second part of the BusinessWorld Insights series, Robertson Chiang, founder, chief operating officer, and chief technology officer of online payment platform Dragonpay Corp., observed from its end that the usage of fintech notably increased amid the quarantine that started last year.

“Our transaction almost tripled during this period, which is a reflection of the people changing their habits from physical retail to going online,” Mr. Chiang said.

The trend seemed to be continuing this year, he added. Assuming that their transactions in the first half of 2021 would be the same in the second, it would almost double their transaction count in 2020.

Payment methods also shifted, Mr. Chiang observed. From the 21.1% e-wallet usage in 2019, it leaped to around 64% in 2020 and then around 71% in the first half of 2021.

Similarly, GCash’s Chief Commercial Officer Frederic Levy suggested that as many people continue to use such technology, enterprises should incorporate it in their operations as well.

“It’s getting more and more obvious for any form of businesses — including the small ones up to the big, organized ones — that they need to have [a digital] form of payment proposed to the consumer,” Mr. Levy said.

Moreover, fintech would evidently make payment convenient for the consumers. “So, the question [now] is what reason that would push you not to jump fintech if you are a small business,” he stressed.

As such, Mr. Levy later shared his advice for small and medium enterprises on adopting fintech solutions. “From an MSME perspective, simplicity and onboarding clearly are a critical component because it will look for a provider who can propose you an all-in-one solution,” he said.

“Make sure that you are going after the payment solution that makes sense for your business, and also going for the widest audience possible,” he added.

Similarly, PayMaya’s Chief Product Officer Mitch Padua also suggested that enterprises should look for the widest reach in terms of various payment types since second-guessing what consumers will have is difficult.

“[Look] for a partner that can provide all types of payment, whether it’s online or offline, sometimes your business can have a mix of both. It’s very hard to reconcile if you have different terminals, payment gateways, [and] partners for each type of payment,” Mr. Padua said.

Another thing for MSMEs to look at is competitive rates. “At the end of the day, each partner or payment solution will have different rates, and someone that can help you lend all of those payment types into one simple rate will make your life a bit easier,” he added.

Mr. Padua also noted that the growing presence of these digital payment solutions will be exponential and such growth will be driven by services like theirs as merchant payment is expected to be the next trillion-peso segment.

“Accelerating business to consumer, business to business, and business to government payments is where PayMaya commits to address,” Mr. Padua shared. “Over the short term, we’re coming up with exciting innovations to make sure we can seamlessly enable businesses to send payments to other businesses and individuals by offering solutions that capture settlement, all the way down to disbursement, and to encashment.”

Another factor expected to drive growth is that everyone can now become a digital entrepreneur with the transformation of MSMEs on the ground, he said. “We’ve begun the digital migration of our Smart Padala agents to become a one-stop shop for digital financial services. Beyond remittance, they can now serve as agents for digital payments, digital lifestyle, and digital banking services,” he added.

EXPANDING REACH TO CUSTOMERS
Alongside its role in realizing full financial inclusion in the country, fintech is expected to contribute more to making financial services more accessible to consumers.

During the last leg of the online forum series, executives from industry players noted how their services have started performing these roles. JF Darre, chief data officer and head of financial services of GCash, pointed out that over a third of its users have tapped on its financial services such as credit, savings, investment, and insurance that can be availed right from the GCash app.

He also noted the steady adoption of digital in terms of partnerships with the local government units (LGUs), with over P16 billion worth of social amelioration disbursed to over two million Filipinos through partnerships with LGUs.

“Digital can be part of the solution. It’s a complementary kind of solution in helping [amid] the crisis,” Mr. Darre said, adding that GCash has always focused on making their products accessible and affordable.

Meanwhile, Mar Lazaro, managing director and head of enterprise business and sales at PayMaya, noted that PayMaya’s users doubled in 18 months, with about 62% of new registrations accounted outside Metro Manila and growth coming from the Baby Boomer and Gen X demographics. He also noted that the e-wallet provider makes sure that no one gets left behind by this shift to digital as it serves consumers without a smartphone through PayMaya’s network of over 45,000 Smart Padala agent touchpoints.

As the financial inclusion push moves forward, Mr. Lazaro sees digital hubs within the communities to take a key role.

“Beyond remittance, community hubs such as sari-sari stores serve as bridges to the digital world. Soon, they will be digital agents for banks, e-commerce, and so on, and we’ll see that happening in the next coming months,” he said.

As it aims to expand access to financial services, fintech is also seen to have kickstarted synergy among industry players and other stakeholders.

“We recognize the importance of fintech in enriching our customer experience and promoting seamless, frictionless banking for all 24/7,” Mr. Villanueva of Fintech Alliance said. “Because of this, we believe that technology can help promote synergy amongst all players in the industry.”

Such synergy was evidenced among insurers, whose representatives in the panel shared their recent initiatives in making their products more accessible through fintech partners and other channels.

Zayd Tolentino, chief technology officer of Singlife Philippines, shared that technology helps address the gap between the insured and the uninsured, who are “composed of mainly middle-income families in search of protection products that fit their financial needs and can be easily adjusted when their needs change.”

Yet, Mr. Tolentino added, insurance technology (insurtech) cannot exist without fintech. “You need both technologies working together to disrupt the life insurance industry and deliver protection products that are truly digital.”

Rogie Niño, assistant vice-president and head of business project management office at Insular Life (InLife), considers insurtech as an extension of fintech, particularly an application that heavily touches consumer convenience and experience from the creation and distribution of insurance products to the administration of the insurance business.

Mr. Niño further highlighted that InLife partnered with platforms such as Maria Health and Lazada to make their services more available to consumers. “There are upcoming fintech partnerships that InLife is currently working on — the likes of GLife, Kwik.insure, [and] City Savings, to name a few — which depicts that we’re an active player in this digital ecosystem,” he added.

Mr. Tolentino, on the other hand, pointed out its use of blockchain technology, Application Programming Interface-driven approach, and cloud to make life insurance “totally mobile-first.” He added that their firm built a plug-and-play solution that only needs to connect to the partner’s Know Your Customer (KYC) data and payment platform.

“This plug-and-play solution, or what we call our microservices portal, houses all our protection products and can be integrated into the front end of any digital platform,” he explained. “This cohabitation setup allows a seamless user flow between two platforms without having to switch screens.”

“For any incoming partner, we simply create a partner node and embed our portal within their app so they can offer our products to their customers,” he added.

MEANINGFUL FINANCIAL INCLUSION
While the country has achieved much in its quest for financial inclusion with the help of fintech, much remains to be done.

Rex Gatchalian, mayor of Valenzuela City, pointed out the importance of building an enabling environment for fintech to thrive, which the government — particularly LGUs — should initiate.

“Before we become inclusive, government and LGUs must be able to provide that platform,” he said, pointing out that this “multidimensional issue” can be addressed by ramping up the national ID system and building up the country’s digital infrastructure. The latter, he stressed, heavily depends on internet service providers (ISPs).

“ISPs really have to shape up… It’s more of a private sector initiative in fixing infrastructure,” Mr. Gatchalian said.

Kiranjit Singh, head of the Strategy3 division at market research firm Ipsos, said that financial inclusion must be meaningful.

“We should have meaningful financial inclusion [that goes] beyond just transactions [and enables] the ability of Filipinos to utilize certain several financial tools for their personal growth [and the] growth of their business,” he said.

Mr. Singh added that digital inclusion cannot be the only solution for financial conclusion in the Philippine context. “You still need to have the basic, traditional, physical means of getting more Filipinos to become more financially inclusive,” he said.

He also noted that “financial inclusiveness is one of the greatest enablers for a rising middle class,” and this fact should direct current and future policies that will enable fintech.

“Fintech is actually the best leveler in terms of getting more people to be financially inclusive,” he emphasized.

Along this quest for financial inclusion, the cultivating financial literacy among Filipinos must not be overlooked.

Mr. Villanueva notes the finding in BSP’s 2019 survey that the reasons cited by 88% of mobile phone users who don’t use their phones to perform financial transactions were the lack of awareness, lack of trust, and lack of mobile signal, as well preference in physical transactions.

“To help improve this scenario, a responsive grassroots program on financial education and digital literacy must be launched,” he said, noting that the Rural Financial Inclusion and Literacy Bill and the Use of Digital Payments Bill, both pending in Congress, will deepen roots of financial education and inclusion if they push through.

Moreover, he recommends the integration of lessons on digital finance and fintech in the basic education curriculum; effective strategic communications through the use of alternative and digital media; and the maximization of social media reach and platforms to cultivate financial awareness and literacy and so shape the behavior of Filipinos towards a positive attitude with fintech and financial services.

Mr. Singh of Ipsos, meanwhile, noted the need to educate consumers on the do’s and don’ts of managing accounts and sharing sensitive data.

“Across Southeast Asia, we’re seeing right now the rise of scams or mule accounts. The new generation of financially inclusive [people must] know what they should and should not share with strangers,” he said.

Ensuring quality education in online format

BusinessWorld entered the podcast space in a big way with a new product called B-Side, which allows our reporters to talk at length to their sources above and beyond the day-to-day requirements of spot news reporting. Here are some of the highlights of our podcast year, as well as an index of our notable pods, our own little way of adapting our journalism to the pandemic.

Angelica Y. Yang

The government has failed us — students

The Duterte administration deserves a failing grade for its preparations for the upcoming academic year, says student leader Raoul Manuel. Mr. Manuel, president of the National Union of Students of the Philippines (NUSP), lists the union’s primary demands for the safe reopening of classes amid the COVID-19 pandemic.    

The university of the future: Philippine tertiary education amid the pandemic

In this episode, Raymundo D. Rovillos, chancellor of the University of the Philippines (UP) Baguio, talks about the university’s plans for remote learning. Turns out, the UP System has to play catch up with the likes of Mapua Institute of Technology and Far Eastern University, schools that embraced remote learning long before the coronavirus hit because of Manila’s notorious traffic jams. 

Hospitals and the next coronavirus wave

Vann Marlo M. Villegas

Helping hospitals get ready for the second wave and beyond

Equilife Medical founder Abetina Valenzuela talks about the allocation and management of life-saving equipment — such as ventilators — during a pandemic. There’s a lot of room to grow and improve medical services, and make care accessible. The pandemic has only accelerated the pace at which innovation must take place.

The boost to the sports industry from a successful Olympics

Michael Angelo S. Murillo

The sports industry: down but not out

Rely San Agustin, a sports marketing professional who has been in the industry for more than 20 years, tells BusinessWorld senior reporter Michael Angelo S. Murillo how sports stakeholders are dealing with the harsh reality that getting fans back into the stands will take time. “A bubble setup makes sense,” said Mr. San Agustin. “Seclusion is needed. You really have to control movement in and out of the venues.”

Hitting the gym: how the local fitness industry is dealing with the coronavirus

Gab Pangalangan, marketing manager of UFC Gym Philippines, fitness coach and founder of combat sports website Dojo Drifter, explains how gyms are dealing with the pandemic and what lies ahead for them. He discusses why gyms see themselves as essential businesses and how even a “high-touch” industry like physical fitness is moving to digital.

How brands have learned to personalize their product offerings using data

Patricia B. Mirasol

Selling it: lessons in cross-border e-commerce

Anchanto, a Singapore-based automation and logistics platform, projects that cross-border e-commerce in the Asia-Pacific region will grow to $1.5 trillion by 2023. The Southeast Asian market — which has the highest number of young people with internet access — is expected to account for 40% of this trajectory.

Vaibhav Dabhade, founder and chief executive officer of Anchanto, explains how local micro, small, and medium enterprises or (MSMEs) can compete against established brands in the online marketplace.

How the hospitality industry pivoted after losing international tourists

No vaccine, will travel?

While the Philippines waits for vaccines, hotel operators — and other stakeholders — are finding ways to assure people that it’s safe to venture out. “We’re still hopeful that we can rely on local travel but it will take time. We need to get people back on their feet,” said Cinty R. Yniguez, director of sales and marketing at Seda Vertis North. “A lot of destinations have been successful at reeling in travelers and [helping them] surpass their anxiety and paranoia.”

The future of jobs

Patricia B. Mirasol

Looking for a job in a down market

Career coach Caroline Ceniza-Levine says that the coronavirus is not the end of your career. She gives practical advice, from tips on how to handle online interviews to the two main skills that you have to be thinking about if you’re looking for a job.

A global path yielding towards recovery

By Chelsey Keith P. Ignacio, Special Features Writer

EVEN BEFORE the coronavirus disease 2019 (COVID-19) pandemic began to plague industries from the past year, significant issues such as the financial crisis of 2008-2009 and the ongoing trade and tariff tensions had impacted manufacturing.

By early 2020, when the pandemic limited business operations and closed international borders, critical impacts were felt on the manufacturing sector. China and other East and Southeast Asia countries experienced the effects by the first quarter while the rest of the world recorded production losses in the second and third quarters.

A year over in the COVID-afflicted world, global manufacturing production is on its path to recovery in the first quarter of 2021, according to the latest United Nations Industrial Development Organization (UNIDO) quarterly manufacturing report. The speed of recovery, however, varies on country and industry groups.

After the 6.8% drop in the manufacturing output due to the early impacts of COVID-19 a year ago, UNIDO recorded an annual output growth of 12.0% in the first quarter of the current year.

In the industrialized economies, the agency reported a 1.5% growth in the said quarter compared to the same period of 2020 when viewed at a glance. But looking more closely, not all countries have seen an increase based on their manufacturing outputs.

Year over year, the Northern American region still declined by 0.6%. Yet in the previous quarter, it recorded a 2.8% drop. “This development is primarily linked to the manufacturing activity in the United States, where output fell by 0.6% and 2.6% in the last two quarters, respectively,” UNIDO’s report read.

Meanwhile, manufacturing outputs of industrialized economies in the Asia and Pacific (APAC) region have surpassed their production levels before the pandemic, recording an increase of 2.7% in the first quarter of 2021.

Although Japan, the region’s largest manufacturer, has recorded a 1.3% output reduction in the said quarter, the growth figures of Taiwan (13.6%), Singapore (9.7%), and the Republic of Korea (5.6%) have counterweighed the decline. Such a significant rise in output is attributable to the positive performance of the computer and electronics, and the pharmaceutical industries.

Industrialized countries in Europe also increased their manufacturing production by 2.6% in the first quarter of 2021. Ireland notably registered two-digit growth rates for the last two quarters. Italy, France, and Spain grew their outputs by 9.0%, 1.7%, and 1.5%, respectively. Germany, however, has a decreased output of 1.8%.

The United Kingdom, now a non-European Union (EU) industrialized economy, has an output drop of 1.6% in the same quarter, following its 2.7% decline in the previous quarter. “Uncertainties regarding Brexit and the future relationship between the United Kingdom and the EU persist and could affect the performance of the country’s manufacturing sector in the post-pandemic era,” UNIDO noted.

Somehow akin to the industrialized economies, developing and emerging industrial countries also logged indications of recovery in their manufacturing productions at varying rates in the first quarter of 2021, as shown on the group’s 3.2% increase. This figure does not include the outputs from China, the largest manufacturer globally.

UNIDO’s statistics presented China separately due to its size and specific characteristics of its economy. “Sustained high growth rates over the past several years have rapidly been transforming China into an industrialized economy,” the organization said.

In the latest seasonally adjusted figures, China’s manufacturing sector, including most of its industries, reported a year-over-year increase rate of 38.2% during the first quarter of 2021. “It remains uncertain, however, in what direction China’s export-oriented manufacturing sector will continue to develop in the context of dynamic domestic activity and subdued international demand,” UNIDO also noted.

Looking at the other developing and emerging industrial countries in the APAC region, a 2.5% year-over-year increase in manufacturing output is shown in the first quarter of this year. But a closer observation manifested the differences in the production among the countries. As examples, India, Turkey, and Vietnam saw a 5.5%, 12.7%, and 7.6% growth, respectively. In Indonesia, however, the rate decreased by 1.5%.

Likewise, the output growth in European developing and emerging industrial economies differed from country to country. The group generally accumulated a 1.9% year-over-year increase, with Greece, Romania, and Croatia experiencing output growths of 2.5%, 2.8%, and 5.0%, respectively. But decreases occurred in the Republic of Moldova by 3.0% and in Ukraine by 5.4%.

In the same period, the Latin American region also experienced a 5.4% increase when compared year over year. “It remains unclear whether this is a sign of sustainable stabilization, considering the sluggish growth trends that have been observed in this country group since 2018,” UNIDO added.

The activities in Mexico and Brazil, the two largest manufacturers of the region, made respective 0.4% and 6.6% output rates. An increase in outputs also showed in Argentina (11.7%), Colombia (6.6%), and Costa Rica (4.7%). Chile, the group’s only industrialized country, experienced a 0.5% rise in a year-over-year comparison.

Meanwhile, by the growth estimates based on the limited available data, a slight increase of 0.8% showed in the African region, compared to the first quarter of 2020. Senegal, Rwanda, Nigeria, and Tunisia increased their manufacturing productions by 12.9%, 9.9%, 2.7%, and 2.0%, respectively.

Such varying growth among country groups, UNIDO continued, showed on the industrial groups based on technological intensities.

“In addition to the COVID-19 crisis in 2020, pre-pandemic uncertainties related to rising trade restrictions had a major influence on producers, leading to a gradual slowdown since 2018, albeit with varying impacts in different industrial sectors,” the organization explained.

In 2020, UNIDO recorded output decreases of at least 5% in the first quarter and exceeding 10% in the second quarter.

By the first quarter of 2021, medium-high- and high- as well as medium-low-technology industries experienced faster recovery with output growth of at least 10%. The medium high- and high-technology industries significantly gained a 16.8% rise. The low-technology industries, meanwhile, have seen a year-over-year 5.8% growth rate.

UNIDO also reported that in all country groups, the majority of the industries such as computer and electronics, electrical equipment, rubber, and plastic, as well as chemical products seen remarkable growth in the first quarter of 2021. But in the same period, in a year-over-year comparison, textiles, wearing apparel, and coke and refined petroleum products witnessed declines in some country groups.

This 2021, UNIDO continued, global manufacturing projections would still see recovery, though the speed would also vary across the regions.

The agency forecasted that the manufacturing value added (MVA) in the industrialized economies would grow by 7.2% in 2021. United States is expected to lead the group, followed by Slovakia and France.

Whereas, for the MVA in European industrialized economies, recovery is expected with a growth rate of 5.7%. In the Eastern Asian industrialized countries, the projected growth is 6.2%.

Meanwhile, according to the Global Manufacturing Purchasing Managers Index (PMI) of J.P. Morgan and IHS Markit, outputs continued to rise in April. Growth was still visible in manufacturing outputs from May to July, though at a slower rate. PMIs during the said months also improved, but June and July saw a slow pace.

By August, however, the report showed that the upturn in global manufacturing “lost further momentum” as output growth rates decelerated in several major markets.

With the above neutral mark of 51.9 as the output rate in August, manufacturing production climbed for the fourteenth successive month. But during that sequence, last month’s growth rate of output eased to its weakest.

PMI in August fell to a six-month low of 54.1. Growth was still present in nations including the United States, the United Kingdom, Japan, Germany, France, India, South Korea, and Brazil. China, Russia, and Mexico were among the countries that registered a sub-50 reading.

In the Philippines, the respective PMIs for June and July were at 50.8 and 50.4, according to IHS Markit. While July recorded an uptick, it contrasted with the declines during April and May.

By August, the country’s PMI plunged at a 15-month low of 46.4, as the Enhanced Community Quarantine was imposed in Metro Manila earlier in August. Production volumes also fell for the fifth month in a row.

“Factories and their clients in the Metro Manila area once again paused their production lines in a bid to curb the spread of the new delta variant. Consequently, all five of the PMI components worsened, or fell deeper into contraction territory,” explained Shreeya Patel, an economist at IHS Markit, in a statement.

On a brighter note, Ms. Patel continued, the expectations of firms towards the outlook remained optimistic, hoping that the recent downturn is temporary. But some firms were still uncertain over the longer-term implications of COVID-19.

“Vaccinations remain paramount to controlling the spread of the disease and the associated variants. Policy makers have once again reiterated the importance of inoculating the population, which it endeavors to do by early next year. Firms will hope shocks to the supply of vaccines are brought under control to prevent this being pushed back again,” she said.

Mapping supply chain transformations throughout the crisis

FREEPIK

SUPPLY CHAINS have no doubt encountered considerable disruptions when the coronavirus disease 2019 (COVID-19) crisis hit almost all countries. Seeing several vulnerabilities in the supply chain, organizations have recognized the needed transformations through resilience, technology, and sustainability.

The crisis has evidently substantial impact that it came to no surprise that only 2% of the 200 senior-level supply chain executives (from organizations in the United States with over one billion US dollars in revenues) said that they were fully prepared for the pandemic, according to a survey done by multinational professional services firm Ernst & Young (EY) in late 2020. On the other hand, 57% experienced the impacts of serious disruptions, with 72% reporting a negative effect.

Moreover, the degree of the crisis varied between the sectors. Companies mostly belonging to the life sciences sector, likely because of their essential products, witnessed positive effects with the increase in customer demand (71%) and coming up with new products to market (57%). The entire automotive companies surveyed, however, said they have negative effects.

“Multiple national lockdowns continue to slow or even temporarily stop the flow of raw materials and finished goods, disrupting manufacturing as a result,” Sean Harapko, EY Americas Supply Chain Transformation and Global Supply Chain RPA leader, noted. “However, the pandemic has not necessarily created any new challenges for supply chains. In some areas, it brought to light previously unseen vulnerabilities.”

Accenture, meanwhile, looked over the issues on the supply chains in its article on supply chain disruptions at the time of COVID-19.

According to the consulting and professional services firm, supply chains lack global resilience, making them break down in the face of multi-country disruptions.

The supply chain is also becoming more costly due to the less global and e-commerce fulfillment costs. Yet, additionally, its IT system is still expensive to operate, inflexible, and excessively dependent on legacy technologies every so often. Talent gaps persist across the supply chain as well, making it highly reliant on the human workforce. There is also a need for flexibility in the supply chain to cater to the demands of consumers for personalization and customization.

Another matter needed to be addressed in the supply chain is to meet the expectations of stakeholders for sustainability, given the significant impact that supply chains have on the planet.

As vulnerabilities of the supply chain are uncovered, organizations thus stepped up to fill the gaps to survive the crisis.

With the evident disruptions caused by COVID-19 to the supply chains, there is a crucial need to invest in supply chain resilience.

“Over the past decades, the discussion around optimizing supply chains has focused primarily on cost efficiency and commercial best outcomes. However, as recent history has demonstrated, future supply chains will need to begin factoring resilience and adaptability into their calculations,” Mattias Hedwall, global head of international commerce and trade at Baker McKenzie, wrote in an article published by the World Economic Forum.

Mr. Hedwall similarly noted that the crisis exposed modern supply chain weaknesses, to the extent that many companies are in look for what to do next.

“Such decisions should of course not only focus on the supply side patterns but must also consider that demand patterns may look different going forward — the key here is to have a holistic approach and ensure that many different perspectives are considered,” he said.

Along with resilience, Mr. Hedwall continued, developments in technology and sustainability should be among the considerations in reviewing supply chains as well.

Technologies already proved themselves as an efficient solution for industries to carry on their operations. In fact, from the said EY survey, 92% did not stop their technological investments even at a time of uncertain economic environments. “This speaks to the value of a digital supply chain in helping enterprises navigate disruptive forces and respond faster to volatile supply and demand,” Mr. Harapko remarked.

“The COVID-19 pandemic has shown the many different ways business can continue to effectively communicate and manage within a remote working environment, which many companies are likely to leverage going forward,” Mr. Hedwall added. “Indeed, those operations with stronger digital infrastructure have fared better in the COVID-19 pandemic than those without.”

Hence, an expectation on the future of the supply chain is the adoption of more advanced technologies, with 64% of the EY-surveyed supply chain executives noting the acceleration of digital transformation due to the pandemic. 52% of the executives also considered that the autonomous supply chain is either here or will be by 2025.

Accordingly, as the supply chain operates with more technologies, there is a need for workforce reskilling. This is the second priority (next to increase efficiency) over the next three years of the executives surveyed by EY.

“There will be efforts to help workers use digital technologies, adapt to changing company strategies and ways of working like increased virtual collaboration, and assist people in operating equipment with health and safety in mind,” Mr. Harapko added.

Another interesting transformation seen on the supply chain is having a further emphasis on sustainability. From the EY survey, 85% are more focused on environmental and sustainability goals. And Mr. Harapko considered that these sustainable supply chain practices would surely stay as investors, employees, and customers look at the sustainability in organizations.

Supply chains are arguably a way in which organizations can make a positive impact in the world, said Mr. Hedwall of Baker McKenzie. “Those looking to change their supply chains should consider how to integrate elements and practices around human rights including labor rights, environmental protection, product sustainability, inclusive economic growth, and ethical business practices,” he said. — Chelsey Keith P. Ignacio

Lighting up a carbon-neutral world through alternatives

By Bjorn Biel M. Beltran, Special Features Writer

FACED with a worldwide pandemic and consequent global recession, more people have grown aware of social and environmental issues that pose risks to their everyday life. Sustainability has become such a powerful movement that, according to a global report from The Economist Intelligence Unit, commissioned by the World Wildlife Fund, there has been a 71% rise in online interest in sustainable goods around the world over the past five years.

The increasing demand for sustainability is not only relevant in high-income countries, but is also strong in developing and emerging economies, with an increase of 24% in Indonesia and 120% in Ecuador.

The push for sustainability has been strengthened in the midst of the ongoing pandemic. Research and advisory firm Forrester found that a third of US online adults say they spend more time thinking about the climate than they did before the coronavirus disease 2019 (COVID-19) pandemic.

Further, in direct response to the events of 2020, 36% of US online adults are looking for ways to contribute to local communities and 31% spend more time thinking about global challenges like poverty or hunger.

Foremost in these conversations is energy. As a major source of the greenhouse gas emissions, the global energy industry is expected to transition towards cleaner, sustainable energy and achieving net-zero emissions by 2050. This is one of the main strategies proposed by the Intergovernmental Panel on Climate Change (IPCC) to prevent climate catastrophe.

Such discussions will be at the forefront in November, the United Kingdom will host the 26th UN Climate Change Conference of the Parties (COP26) in Glasgow to accelerate action towards the goals of the Paris Agreement and the UN Framework Convention on Climate Change.

The Philippines has pledged to reduce its carbon emissions by 75% by 2030, yet how effective such a transition will be towards pursuing the UN’s goal of net-zero emissions by 2050 remains to be seen. How will this influence the components of the Philippines’ energy grid? Where is the country now in terms of adapting renewables?

This was the topic in a special BusinessWorld Insights discussion themed “Energy’s Sustainable Future in Renewables and Nuclear,” where leaders from the country’s energy sector gathered to discuss the state of sustainable energy in the country and where it stands compared to the rest of the world.

John Eric Francia, president and CEO of AC Energy Corp., the energy arm of the Ayala Group, noted two significant consequences in the increasing global demand for clean energy.

“One of the key implications of the whole world moving to a net-zero emission path is that significant investments, we’re seeing great pools of capital shifting towards sustainable investments. These are investments in renewable energy which is one of the main investment areas, green hydrogen, carbon capture technology, electric vehicles,” he said.

“What this also means is that less and less investments are being made in traditional fossil fuels. There will be declining investments and this is one risk that we need to highlight over the longer term: The global trade on fossil fuel which we are heavily dependent on is going to be vulnerable. The bottom line is we should take great effort into achieving that energy independence. We are too dependent on the global supply chain when it comes to fossil fuels. It’s not just an environmental issue, it becomes a security issue as well.”

If the country continued to rely on traditional fossil fuels, he explained, the country is likely to run into rising energy prices in the near future. Local resources such as the Malampaya gas field is projected to run out before the end of the decade. Meanwhile, the prices of imported coal and oil continue to soar.

Mr. Francia said that the country needs to harness its indigenous resources in the country to reduce its reliance on imported fuel. Renewable energy (RE) will be the most obvious choice: that is, solar, wind, hydro, geothermal, and biomass. Yet while he noted that AC Energy is a big proponent of renewable energy, he believes that renewables still need to be complemented by supplementary technologies like battery storage and transitionary fuels like natural gas.

“The energy transition is upon us. We should step up in terms of taking a more proactive stance. It will take time. It’s not going to be overnight. We cannot just switch off all the carbon-emitting power plants. It has to be an orderly transition,” Mr. Francia said.

“We need to have a long-term road map. Renewables will have a big role to play. Gas will have a transition role, and all of these enabling technologies have to be factored in as they get developed over time.”

Atty. Jose M. Layug, Jr., senior partner at Puno & Puno Law, brought up historical data of the country’s renewable energy initiatives, showing that the country had in previous years successfully relied on renewables for 30% of its energy demands.

He said that the country is not lacking in any rules and frameworks regarding the use of renewables, citing the National Renewable Energy Program, the Net Metering Program, Renewable Portfolio Standards, the Green Energy Option Program, the Renewable Energy Market Rules, and the Green Energy Auction Program, among others.

“The sudden halt in development of RE in the Philippines was primarily driven by the policy announced by the current administration, where they said that we should be technology-neutral. While I understand that the driver behind that was the cost, I’ve been saying ever since that our policy should be more pro-renewables. In fact, since 2010 the price of renewable energy plants has gone very low,” he said.

Another option available to the country is the much-stigmatized use of nuclear energy. Carlo A. Arcilla, director at the Philippine Nuclear Research Institute, lamented that nuclear energy is not considered by policy makers as a low-carbon method of energy generation despite its many benefits.

Mr. Arcilla said that many scientific breakthroughs have made nuclear energy among the best sources of energy in the world, as it emits the lowest amount of carbon dioxide compared to fossil fuels and even sources like solar and wind. It can even be considered as a renewable source of energy, as recent developments have made it possible to extract uranium from seawater.

“If you compare its carbon dioxide output with coal, petroleum, lower than even wind and solar. In fact, the IPCC has said that if there were no nuclear power, the world’s total carbon dioxide emissions would increase by 10%,” he said.

“The most important thing about nuclear fuel is that it has a very high energy content for its small volume. A uranium pellet of only 2% uranium is equivalent to one ton of coal, 120 gallons of oil, and 17,000 cubic feet of natural gas… Sometimes people ask me why even consider nuclear when we have solar and wind. And my answer to that is: Why not have nuclear to be the backup to solar and wind?”

Terra form

PHOTO FROM NISSAN PHILIPPINES

Nissan Philippines refreshes its best-selling midsize SUV

By Kap Maceda Aguila

SINCE ITS introduction in 2018, the Terra has, by all accounts, been an answered prayer for Nissan Philippines, Inc. (NPI). Competing against more established nameplates in the midsize SUV category, the Terra has decisively cracked the top three ranking in the segment.

Now, NPI is doubling down with the launch of an upgraded version. “The new Nissan Terra is a smart and reliable family SUV that gives you and your loved ones confidence, comfort, control, safety, and peace of mind. We took the well-known all-terrain toughness and capabilities from Nissan’s 70 years of SUV heritage, and added the latest technologies, to turn the new Terra into the perfect partner for sharing experiences with your family and loved ones,” said Nissan Philippines President and Managing Director Atsushi Najima in a release.

Replying to a question from “Velocity” during the media launch, done online, Mr. Najima said that the Terra has been ranking either second or third in sales — trading places with the Mitsubishi Montero Sport — as the Toyota Fortuner continues to lead the segment. The Terra’s sales performance translates to 22% to 23% of total category units sold.

While the smart money should be on that share growing with the refreshed version, Mr. Najima is reticent about making projections, describing the market as too “volatile” for predictions. NPI would rather communicate the good things about the Terra, rather than put pen to paper and make forecasts.

On the new Terra’s front end is a V-motion grille with a redesigned front bumper. Its headlamps are outlined by C-shaped LED daytime running lamps. Within the assembly are quad LED projector headlamps, said to be a first in the segment, and with an auto-leveling function. New taillamps mark the changes in the back, as does a restyled rear fascia which “emphasizes the vehicle’s strength and width.” The rear bumper has been recast, and the Terra now boasts an updated spoiler design and sharkfin antenna. New 18-inch wheels are in a two-tone alloy design. The SUV gets a quick steering gear ratio for improved maneuverability, four-wheel disc brakes, and a rear differential lock on the VL 4×4 variant.

Inside, there are plenty of obvious changes as well. The dashboard has been restyled for “a more modern and upscale look,” and the cabin receives a two-tone look. A flat-bottomed steering wheel gives a sportier feel, while a new center console design integrates a wireless charging feature and e-parking brake control.

An intelligent key with push button engine start/stop system and steering wheel controls are standard across all variants, as is a new high-contrast seven-inch Advanced Drive Assist Display. Other toys include a Bose premium sound system with eight speakers (for the VL 4×4) and 11-inch flip-down rear monitor (for VL trims).

Equipped on all variants are vehicle dynamic control and hill start assist, plus Nissan Intelligent Mobility (NIM) with a varying number of features depending on the trim. Speaking of which, new technologies have been added to the suite (i.e., Intelligent Forward Collision Warning, Intelligent Emergency Braking, Intelligent Driver Alertness, Rear Cross Traffic Alert), in addition to the features found in the outgoing model.

“The suite of these NIM features combine into the 360 Safety Shield, a 360-degree safety system which helps protect both the driver and passengers from potential risks approaching the vehicle,” reports Nissan.

VL models get the nine-inch Nissan Advanced Touchscreen Display Audio with wireless Apple CarPlay and Android Auto with navigation; the other two variants receive an eight-inch screen but the same Apple/Android compatibility.

The new Nissan Terra is available in six exterior colors: Nebula Metallic Red, Forged Metallic Copper, Aspen Pearl White, Lunar Metallic Gray, Brilliant Silver, and Galaxy Black. Inside, the Terra receives a two-tone, black/burgundy interior leather trim for the VLs; and black interior for the VE and EL variants.

For more information, visit www.nissan.ph or follow the Nissan Philippines social media accounts.

Driving to 2030

Ford Mach-E — PHOTO FROM FORD, MAZDA, AND VOLVO

Time traveling aboard a trio of futuristic EVs in the here and now

A LONG TIME ago in a galaxy, far, far away…

That’s how I would start if I were to write about a test drive of Luke Skywalker’s X-34 Landspeeder, or a test flight of an old yet stealthily fast Corellian freighter that’s co-piloted by a Wookie.

But I’m writing about vehicles of the future — not of those a long time ago. And the galaxy I’m referring to is our very own — not one far, far away. So, let’s start crystal ball-gazing. Better yet, come join me on a ride of some groundbreaking new cars coming up in this decade. Why gaze when you can drive, right?

LOCATION: MINE, JAPAN YEAR: 2023
I’ve driven in Mazda’s Mine Proving Grounds in Japan before. It was a rainy day in 2018, when Southeast Asian journalists clustered under transparent umbrellas as we waited our turn to take the wheel of the then-new Mazda3. This time, the Land of the Rising Sun lived up to its name as brilliant sunshine greeted us as we walked to the paddock — almost like it was smiling on us as most of us were traveling abroad for the first time after the pandemic. This time, we would be driving Mazda’s landmark model, the head-turning new MX-30.

The MX-30 looks like a crossover, but doesn’t have the “CX” prefix that denotes Mazda’s line of crossovers. Instead, it has the “MX” prefix that’s used in just one other Mazda car, the ageless and delightful MX-5. Hmm.

But what actually makes the MX-30 such an important model for Mazda is the fact that it’s the Hiroshima brand’s first-ever full-electric car — marking Mazda also as one of the very few car makers to jump straight to EVs from internal combustion (IC) engines without going through a hybrid phase.

The MX-30 does not try to go for a mind-boggling driving range or stupendous acceleration figures. As always, this Mazda strives for that hard-to-find balance between functional practicality, dynamic sportiness, and real-world zero-emissions driving.

As such, the MX-30 sports a lightweight 35.5kWh battery — just enough for roughly 160 kilometers of range. For the majority of people who drive 30 to 40 kilometers a day for their home-office-home commute, that’s enough juice to power the MX-30 through four to five days — almost a whole work week. Of course, it also has a 50kW rapid charger that lets you top up the battery from 20% to 80% power in 36 minutes — enough for that coffee break on that out-of-town jaunt.

But if that’s still not enough for you, Mazda is developing a range-extended MX-30 with an ultra-clean-burning Skyactiv-X gasoline-fed rotary engine. Nope, the rotary engine won’t be driving the wheels (it has no transmission or driveshaft that connects it to the wheels); it will just charge the battery or power the electric motor as you drive when the battery is depleted. With that rotary engine, perhaps they should have called it the RX-30, after all.

LOCATION: LOS ANGELES, CA., USA YEAR: 2026
The Angeles Crest Highway never gets old. It’s like driving up to Baguio with all the pine trees and the zigzag roads, although the straight stretches are longer. Each drive is a memorable one — but this one is even more so. It’s a drive of Ford’s much-anticipated Mustang Mach-E. Curiously, my last drive up this beautiful serpentine highway was also in a Mustang — the then-all-new 2014 model.

Even curiouser is how the makers of two timeless sports cars — the Mazda MX-5/Miata and Ford Mustang — are positioning their next-generation electric vehicles to continue the legacies of their sporting stablemates by retaining their legendary “MX” and “Mustang” nomenclatures — even if they have morphed into crossovers or SUVs.

I am continually reminded of this EV’s identity with a plethora of Mustang design and performance cues. It starts with the galloping horse logo on the closed grille. The side view retains the fastback roofline of the Mustang while the rear, for me, bears the strongest resemblance to its muscle car roots, thanks to the wide flanks that give the rear fenders their muscular shape and the triple vertical taillight strips that bracket that iconic galloping horse in the middle.

Of course, the Mach-E wouldn’t be a Mustang if it didn’t have the performance worthy of the name. The flagship Mach-E GT Performance Edition harnesses 480 horses in its underhood corral and delivers 860Nm of tire-smoking torque for a zero-to-60mph run in 3.5 seconds — all while achieving a driving range of 430 kilometers.

If the Mach-E is the future of SUV-loving America’s iconic pony car, it will have a very bright future indeed.

LOCATION: GOTHENBURG, SWEDEN YEAR: 2030
I’m driving the Volvo C40 Recharge in its home country. The C40 is the first Volvo available only as a pure-electric car. It has no internal combustion variants and is just one of a formidable range of purely electric models that form part of Volvo’s commitment to the world that it announced way back in 2018 — that half of its models will be purely electric by 2025, to be followed by an exclusively all-electric lineup by 2030, and to be climate neutral across its full value chain by 2040 (as part of the 2015 Paris Agreement among 197 countries).

It’s a fairly long, nearly 400-kilometer drive to the Swedish capital of Stockholm from the Volvo headquarters, but the wizards from Scandinavia were confident that the C40’s 400-plus-kilometer driving range would make the journey without a recharge.

It seems that they’re cutting it close, but this sleek yet fun-to-drive (zero-100kph in 4.5 seconds) zero-emissions crossover, traversing light traffic and incredibly clean streets and highways (Sweden has a tiny 10.23 million population — less than that of Metro Manila), is the perfect vehicle to do it with. In any case, our C40 test units came equipped with Volvo’s 150kW DC fast charger, which can charge the battery from zero to 80% power in 40 minutes.

BACK TO THE PRESENT
Three crossovers/SUVs. Three pure electric vehicles. Zero emissions. It’s truly an electrifying sea change that we will be seeing and experiencing this decade. The clear skies of a planet that has hopefully reversed its previously inexorable trend towards the destructive effects of global warming will be much more than just the icing on the cake. And is the happily ever after we all want — fairy tale or otherwise.

Claim it, change

Bratislava, Slovakia. Many of the world’s capital cities will be directly affected by a significant rise in water levels, as they are most often alongside main bodies of water. — PHOTO BY JAKOB KURC

The Earth needs our help to keep us alive

A FEW WEEKS ago, the IPCC or Intergovernmental Panel on Climate Change — the official United Nations body responsible for delivering scientific assessments regarding the Earth’s climate change progression to the world’s policy makers — released its sixth assessment report. Also known as the Climate Change Report of 2021: the Physical Science Basis, it was prepared by 234 scientists from 64 countries and published last Aug. 8.

According to the report, climate change is now “widespread, rapid and intensifying.” It can now be observed in every region of the planet and across the entire climate system. Some of these changes in motion — such as the continuous rise of our sea levels — are, in fact, already irreversible and cannot be back-pedaled for centuries to come. And while I doubt that this is anything that a part of us didn’t already know (but which many of us certainly chose to ignore), the take-home here is that basically, there is still time to limit this climate change. Think damage control.

And if we do things right, maybe in around 20 to 30 years we could at least take control in stabilizing our planet’s already higher temperatures. Again, I’d like to emphasize that the realistic goal at this point in time is not even a complete turnaround, but rather some kind of catastrophe mitigation.

UN Secretary-General Antonio Guterres, in a statement published on Twitter, described this 2021 Climate Change Report as “a code red for humanity.” He said: “The evidence is irrefutable — greenhouse gas emissions are choking our planet and placing billions of people in danger. Global heating is affecting every region on Earth, with many of the changes becoming irreversible. We must act decisively now to avert a climate catastrophe.”

What does this mean for regular citizens such as ourselves? Clearly, we are at the mercy of the decisions made by our world’s policy makers. But sadly, we remain in direct risk of the consequences of the continuous rise of the earth’s temperatures. Has it not been commonplace in the last few months to hear more and more news about extreme and unprecedented weather and environmental events, such as the unanticipated and extreme flooding in southern Germany, the wildfires in Turkey, and last week’s hurricane Ida in the United States, whose stormy outskirts also left New York City drowning in one of its worst floods ever?

Human-accelerated climate change is real. The science has already etched it into stone. Scientists from all over the world have congregated, deliberated, and concluded that “the role of human influence on the climate system is undisputed.”

This congregation of scientists has warned us yet again that, at our current pace, global warming of 2°C will be exceeded during the 21st century. The goal is for us to at least not surpass 1.5°C. And needless to say, it is up to us, collectively, to determine our fate.

Mr. Guterres reminds us that “inclusive and green economies, prosperity, cleaner air and better health are possible for all, if we respond to this crisis with solidarity and courage.”

What does this mean in the motoring world? Well, it’s looking like a more aggressive shift from fossil fuel dependent machinery towards battery electric vehicles and other vehicles powered by more (relatively) sustainable energy sources, such as hydrogen fuel cells.

The use of fuel-cell electric vehicles is quite promising because upon taking compressed hydrogen gas stored on board and combining it with oxygen from the air, the chemical process results in the production of electrical power plus water and nitrogen, which can then be released from the car. No oxides of nitrogen are produced, and because there is no carbon in the fuel in the first place, there are no carbon dioxide, carbon monoxide or hydrocarbon emissions involved. Clearly, this is no silver bullet, but among the massive efforts of the automotive industry to attempt going carbon neutral.

Ultimately, what the IPCC scientists underscore is that we have to more aggressively raise our ambitions to mitigate what is happening. So, let’s see what will come out of this November’s climate conference in Glasgow, UK — and hope that more economies will join the net-zero emissions coalition and their pledges in slowing down global warming.

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