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Cash aid, anti-dynasty law among Makabayan bloc’s agenda as it names candidates for 2022 elections

PHILIPPINE STAR/ MICHAEL VARCAS

THE MAKABAYAN BLOC, a group of progressive party-lists, have named their candidates for the 2022 national elections.   

The coalition said during its national convention on Monday that their platform would push for measures such as P10,000 cash aid per family, proposed anti-dynasty law, ending contractualization, junking the National Task Force to End Local Armed Communist Conflict, and resuming peace talks with communist rebels, among others.   

Former representatives Teodoro A. Casiño and Antonio L. Tinio seek a return to the House of Representatives as nominees for Bayan Muna and ACT Teachers, respectively.   

Former agrarian reform secretary Rafael V. Mariano would also run for congressman under Anakpawis. He previously served as its House representative from 2004 to 2013.

Incumbent representative Ferdinand R. Gaite and Moro-Christian People’s Alliance Secretary-General Amirah A. Lidasan were named Bayan Muna’s second and third nominees.   

Gabriela’s Party-list Rep. Arlene D. Brosas and ACT Teachers Party-list Rep. France L. Castro would also run for their third and final term in the House.

Kabataan Partylist selected its national president Raoul Danniel A. Manuel as their first nominee with incumbent Rep. Sarah Jane I. Elago no longer qualified to be nominated under the group as she is over 30 years old by the 2022 polls.

The coalition also backed the senatorial runs of Bayan Muna chair Neri J. Colmenares and Kilusang Mayo Uno chair Elmer “Bong” Labog.

Among significant legislative measures authored by the Makabayan bloc were House Bill 8512, which was enacted into Republic Act 11548, a law that allows the President to defer increases in contributions to the Social Security System during state of calamity.

Its members were also instrumental in the enactment of Republic Act 10931 or the Universal Access to Quality Tertiary Education Act, Republic Act 11037 or the Masustansyang Pagkain para sa Batang Pilipino Act, and Republic Act 11036 or the Mental Health Act. — Russell Louis C. Ku

DoH to investigate alleged expired face shields revealed in Senate hearing

PHILIPPINE STAR/ MICHAEL VARCAS

THE DEPARTMENT of Health (DoH) on Monday said it is investigating the alleged expired face shields for healthcare workers supplied by a private company that was awarded more than P8 billion in contracts.

“There is no (expiration date) placed (on the face shields), but I’m still having that investigated because of the revelation of the officer of the Pharmally,” DoH Secretary Francisco T. Duque III said in a House of Representatives hearing.

Krizel Grace U. Mago, regulatory affairs head of Pharmally Pharmaceutical Corp., confirmed in a Senate Blue Ribbon Committee hearing Friday the claim of a warehouse worker that the certificates of some two million face shields that expired last year were changed to 2021.

DoH Undersecretary Ma. Carolina Vidal-Taino said during Monday’s House hearing that the face shields were already distributed to various healthcare facilities nationwide.

Ms. Mago said the tampering of the face shield certificates had the blessing of the company management, particularly Pharmally Treasurer Mohit Dargani.

Mr. Dargani denied the allegation at the House hearing, saying he believed Ms. Mago was “pressured” by the Senate to admit about the alleged expired face shields.

“I think after what she saw what happened to Mr. Linconn Ong, one of her bosses, I think that really frightened her and put her in a position to just keep saying yes. I have not spoken to Ms. Mago so I don’t know exactly,” he said.   

He also said that he didn’t ask Ms. Mago to go into hiding.   

Senator Richard J. Gordon, Jr., chair of the Senate Blue Ribbon Committee, said on Sunday that Ms. Mago can no longer be reached by the panel following her admission on the expired face shields.

The House originally planned to end its investigation on government contracts with Pharmally by Monday but decided to hold another hearing on Oct. 4 following Ms. Mago’s revelations. — Russell Louis C. Ku

Magnitude 5.7 earthquake jolts Mindoro, parts of Luzon

A MAGNITUDE 5.7 earthquake struck Looc, Occidental Mindoro at around 1 a.m. Monday, with the tremor felt in parts of Luzon, including cities in the capital region Metro Manila.

The Philippine Institute of Volcanology and Seismology (Phivolcs) recorded the earthquake’s depth at 64 kilometers.

Phivolcs said aftershocks were expected and more than 20 were recorded as of Monday morning with the strongest magnitude at 4.5.

Intensity 4 was felt in most of Metro Manila and parts of the provinces of Oriental Mindoro, Batangas, Cavite, Bulacan, and Rizal.

Lower intensities were felt in parts of Laguna, Pampanga, and Nueva Ecija.

No casualties or major damage were reported as of Monday early afternoon. — MSJ

Food security group warns vs proposed offshore mining in Pangasinan 

EIA.EMB.GOV.PH

THE PROPOSED offshore mining project in Lingayen Gulf poses danger to nearby aquaculture and fisheries industries, according to food security advocacy group Tugon Kabuhayan.

Norberto O. Chingcuanco, Tugon Kabuhayan co-convener, said the proposed project will affect the livelihood of fishers and aquaculture operators in Pangasinan.    

The group said Lingayen Gulf has around 3,000 cages for milkfish (bangus), and numerous fishponds and fishpens, with an estimated annual output of 125,000 to 150,000 metric tons (MT).   

“At a farmgate price of P110 pesos per kilogram, revenue from bangus production in Pangasinan alone is at least P16.5 billion,” Mr. Chingcuanco said in a statement on Monday.    

A fishers’ group has earlier expressed opposition to the project, likewise citing its negative impact on the aquaculture industry in the area.    

The Iron Ore Pangasinan Offshore Magnetite Mining project covers the waters of Sual, Labrador, Lingayen, Binmaley, and Dagupan City spanning 9,252.45 hectares.  

[Text Wrapping Break]The project, covered under Financial and Technical Assistance Agreement No. 07-2020-IOMR issued by the government last year, aims to extract 25 million dry MT of magnetite sand annually. The project proponent is Iron Ore, Gold, and Vanadium Resources (Phils), Inc.   

According to Tugon Kabuhayan, the project will affect the livelihood of fisherfolk as the excavation is allowed 500 meters from shore seaward, which houses the coral reef, sea grass and soft bottom ecosystems.   

“Lingayen Gulf is one of the major fishing grounds in the Philippines covering 2,064 square kilometers of water, surrounded by the towns of Agoo, Alaminos, Anda, Aringay, Bani, Bauang, Binmaley, Bolinao, Caba, Dagupan, Labrador, Lingayen, Rosario, San Fabian, San Fernando (La Union), Santo Tomas, and Sual,” the group said.    

Tugon Kabuhayan added that the area is also where spawning and nursery, egg and larval dispersal of economically important species happen.    

“It is difficult to comprehend why some government agencies would allow a project that will further compromise our fish food security especially since government is projecting that we need to import fish in the coming months,” Tugon Kabuhayan convener Asis G. Perez said.    

“It is fair to assume that suctioning and processing raw silt along with sea water from where the magnetite will be taken are likely to kill the eggs, larvae, fry as well as small fishes,” he added. — Revin Mikhael D. Ochave  

Banks support expanded mobility for vaccinated people

THE bankers’ association said it supports measures that will allow greater mobility for fully vaccinated people to boost spending and help the economy rebound from the pandemic.

“The Bankers Association of the Philippines (BAP) strongly supports efforts to grant greater mobility to fully vaccinated individuals,” BAP President Jose Arnulfo A. Veloso said in a statement Monday.

He said offering mobility incentives in Metro Manila and surrounding areas, where 50% of the population is fully inoculated, can spur economic activity.

“The mobility of fully vaccinated Filipinos will encourage spending on various goods and services including in tourism, hospitality, and transport industries that are among those hit the hardest by this ongoing COVID-19 pandemic,” added Mr. Veloso, who is also the president and CEO of the Philippine National Bank.

He said bringing back domestic consumption will aid in bringing about a sustained economic recovery.

The consumption-driven economy grew by 3.7% in the first half and needs to achieve at least a 4.3% expansion in the fourth quarter to meet the lower end of the government’s 4-5% growth target.

Around 17.7% of the population has been fully vaccinated as of Sept. 23, according to the Our World in Data website.

Since the economic rebound has yet to gain traction, ING Bank Senior Economist Nicholas Antonio T. Mapa warned that a premature relaxation of quarantine measures and policy support can also delay the recovery as this will make the country prone to “reinfection.”

“Just like a wound that has yet to completely heal, the Philippine economy remains stuck in low gear and is clearly in need of additional support. Giving in to the itch and quickly reversing these support measures will inevitably backfire on the recovery process and work to undermine the full healing of the economy,” he said in a note Monday.

Mr. Mapa said signs of recovery have emerged after second quarter gross domestic product growth came in at 11.8% but the Philippines is still a year and a half away from returning to its pre-pandemic growth trend.

He said monetary and fiscal support for the economy is still needed to sustain the recovery, after the central bank reported that both businesses and consumers remain pessimistic about the third quarter while bank lending is only starting to pick up.

“Patience and determination throughout the recovery and healing phase will be crucial as we avoid costly removal of support just when the economy needs it the most,” he added. — Beatrice M. Laforga

Senate approves private school tax relief bill on third and final reading

PHILIPPINE STAR/ MIGUEL DE GUZMAN

THE SENATE unanimously approved on third and final reading a bill that makes private schools eligible for a concessional tax rate to help them recover from the coronavirus disease 2019 (COVID-19) crisis.

Senate Bill No. 2407 amends Section 27(B) of the National Internal Revenue Code to make explicit the industry’s eligibility for a temporary 1% tax under the Corporate Recovery and Tax Incentives for Enterprises (CREATE) Act.

The measure also grants non-profit hospitals and proprietary educational institutions a tax rate of 10% once the temporary relief measures expire. Without such concessions, these institutions are liable for the regular corporate rate of 25%.

The Bureau of Internal Revenue had issued a ruling that restricted the eligibility of private schools to non-profits based on its interpretation of the law, a ruling that has since been withdrawn.

The CREATE Act had provided for a concessional tax rate of 1% for enterprises hit hard by the pandemic, with the rate in force between July 2020 and June 2023.

“Private schools are the government’s partner in education. This partnership is even more important today, as our nation deals with the COVID-19 pandemic, which has disrupted educational systems and the formal learning of our current generation of students,” Senator Pilar Juliana S. Cayetano said in a statement.

Ms. Cayetano noted that many private schools are in a critical state, citing data from the Coordinating Council of Private Educational Associations of the Philippines showing that enrollment among member-schools has declined by 60% compared to 2020.

According to the Department of Education’s Learning Enrollment Survey Quick Count data, as of Sept. 13, the enrollment in private schools was 1.4 million, down 57% from a year earlier, and down 66% from 2019. — Alyssa Nicole O. Tan

DICT launches redundant system for national broadband network

REUTERS

THE DEPARTMENT of Information and Communications Technology (DICT) launched Monday a redundant system designed to make the first phase of the government’s National Broadband Program (NBP) more resilient.

“Today, your Department of Information and Communications Technology launches the supplemental infrastructure or resiliency route for Phase 1 of the NBP as part of our ongoing efforts to future-proof the program,” DICT Secretary Gregorio B. Honasan II said during the ceremony.

“Providing fast, reliable, and affordable digital connectivity to our country’s centers of economic activity is central to our efforts to rebuild the economy, which has been severely affected by the pandemic,” he said.

The department said the so-called “resiliency route” is supplemental infrastructure that will serve as a redundancy and protection loop connecting to the international gateway access through Singapore.

“This will play an integral role in the continuity of internet connectivity to the busiest areas of Metro Manila, Metro Cebu, and Metro Davao, and soon every Filipino, bridging the digital divide,” the DICT said in a statement.

The NBP seeks to trigger policy and regulatory reforms, investing in broadband infrastructure such as the national fiber backbone, and stimulate broadband demand.

The national fiber backbone component has three phases: lighting up fiber on the national electrical transmission system, constructing domestic submarine fiber to connect Luzon to the Visayas and the Visayas to Mindanao, and completing the national fiber backbone with multiple loops. — Arjay L. Balinbin

Proposed wealth tax seen generating over P467B

PHILSTAR FILE PHOTO

PROCEEDS FROM a proposed tax on wealthy individuals’ assets have been estimated at P467.1 billion, with the exercise in “redistribution” holding the potential to fund health and social welfare programs, according to a left-wing think tank.

IBON Foundation said in a statement Monday that the proposed wealth tax on individuals with taxable assets exceeding P1 billion will affect about 2,919 people.

“At the very top are around 2,919 Filipino billionaires with some P8.1 trillion in wealth. They comprise less than 0.003% of the population but hold 16% of the nation’s wealth,” IBON said.

The estimated revenue would be “more than enough” to provide P10,000 in emergency aid to 18.6 million vulnerable households, subsidies for micro, small, and medium enterprises to support a wage increase of P100 per day for three months, and hiring additional health workers, among others.

“Collecting just a fraction of the huge wealth of the few is a step to redistributing wealth towards the working people who did so much to create it,” IBON said.

Legislators from the minority Makabayan bloc filed House Bill 10253 or the proposed Super-Rich Tax Act of 2021 that will impose a tax of 1-3%, depending on the extent the assets exceed P1 billion.

As drafted, the bill proposes a 1% rate on taxable assets exceeding P1 billion; a 2% rate on assets above P2 billion; and a 3% rate on assets above P3 billion.

The bill proposes an effectivity date for the tax of Jan. 1, 2022, if passed.

According to the bill, revenue from the tax is to be used for medical assistance and investment in education, employment, social protection, and housing for poor families.

Finance Secretary Carlos G. Dominguez III said that the proposed tax will drive capital out of the Philippines.

Albay Rep. Jose Ma. Clemente S. Salceda, chairman of the House Ways and Means Committee, proposed instead to tax the inefficient use of land, including golf courses and low-density subdivisions. — Russell Louis C. Ku

SINAG says palay farmgate price at P10-13

THE Samahang Industriya ng Agrikultura (SINAG), an agriculture industry association, said the farmgate price for palay, or unmilled rice, is at P10-13, well below production costs of about P15, and blamed the rice import policy for depressing farmer incomes.

SINAG Chairman Rosendo O. So said the low prices farmers receive for their crop “is the Department of Agriculture’s failure. As if this is not enough, the DA even pushed for the eventual reduction of rice tariffs this year,” Mr. So said in a statement Monday.  

President Rodrigo R. Duterte signed Executive Order No. 135 in May which reduced the most favored nation tariff rates on rice imports, both in-quota and out-of-quota, to 35% for one year.

Previously, in-quota rice imports were charged 40% while out-of-quota rice imports paid 50%.

“How can millers or traders afford to buy the fresh harvest of palay at P16/kg or P19/kg for dry palay, which would mean an operating cost of P32/kg of milled rice, versus the P23/kg landed cost of imported rice from China and Myanmar?” Mr. So said.

Citing data from the Bureau of Customs, Mr. So said rice import shipments since 2019 have topped 7.2 million metric tons (MT).

He said rice shipments during the nine months to September of 2.1 million MT have surpassed the import volume for 2020, which totaled 2.06 million MT. A total of 3.13 million MT of rice imports arrived in 2019.  

Mr. So added that the retail price of regular milled rice ranges from P38 to P42/kg, higher than the P27 to P30/kg recorded five years ago.

Meanwhile, Mr. So said the DA, along with the National Economic and Development Authority and Malacañang’s economic team, should organize a purchasing drive for the domestic harvest.

“There is no other way. The DA should buy the palay. It cannot just let the local government units (LGUs) buy the palay from farmers in order to address low farmgate prices,” Mr. So said.

“The DA’s actions are bordering on criminal neglect. It should not burden other government agencies for their anti-farmer, anti-consumer and anti-Filipino stance in the past years,” he added.  

Agriculture Secretary William D. Dar recently called on the LGUs of top rice producing provinces to purchase palay directly from farmers to address low farmgate prices.

Under Republic Act No. 11203 or the Rice Tariffication Law, the limits on rice imports were removed in exchange for importers paying a 35% tariff, the proceeds of which were to fund the rice industry’s modernization.

Asked to comment, Agriculture Undersecretary Fermin D. Adriano said in a mobile phone message that the money used to import rice has come from the private sector since the rice tariffication law was passed, “unlike before… when government through the National Food Authority (NFA) had incurred a total debt of P170 billion.”

“The Rice Tariffication Law liberalizes trade to stabilize rice supply and temper prices, and imposes tariffs which are plowed back via the P10-billion Rice Competitive Enhancement Fund (RCEF) to enable farmers to increase their productivity and incomes,” he added. — Revin Mikhael D. Ochave  

ERC orders two electric co-ops to halt collection of charges for reinvestment fund

THE ENERGY Regulatory Commission (ERC) has issued two separate orders to electric cooperatives (ECs) based in Camiguin and Bukidnon to stop collecting additional charges related to the reinvestment fund for sustainable capital expenditures (RFSC).

The fund seeks to finance the amortization or debt incurred by power providers in expanding, restoring or upgrading their power systems in line with their capex plans approved by the regulator.

In a statement Monday, the commission said Camiguin Electric Cooperative, Inc. (Camelco) did not comply with an earlier order to submit a third-party audit report on its additional RFSC fees, while Bukidnon Second Electric Cooperative, Inc. (Buseco) has yet to submit an update on its additional RFSC collected from August 2014 up to the present.

“In view of the said directive… Camelco’s RFSC rate shall be pegged at P0.5324 per kilowatt-hour (/kWh), while Buseco’s RFSC shall be pegged at P0.2508/kWh until further notice of the Commission,” ERC Chairperson and Chief Executive Officer Agnes VST Devanadera said.

Under an ERC resolution issued in 2009, ECs are required to collect their member-consumers’ contributions which will cover their respective RFSCs.

Ms. Devanadera said the commission will closely monitor Camelco and Buseco’s compliance.

“Their failure to comply with the said directives shall constrain the commission to impose the appropriate sanctions, if warranted,” she added.

Earlier this year, ERC announced it has hired professional services firm Reyes Tacondong & Co. to conduct an independent audit on how ECs are collecting and disbursing the RFSC.

Reyes Tacondong & Co. previously won the ERC’s bid for consulting services on the fund. — Angelica Y. Yang

Of ATP and VAT Refunds

Last month, there was a long, funny Twitter thread that reimagined “The Office” in the COVID-19 era. There can be no doubt about it — the pandemic has ushered in a new reality of work. For one, reconfigurations in the office have become so common as to become the norm.

Our firm opened a new satellite office at Vertis North in Quezon City to be more accessible to employees and clients with offices in that area. Others have downsized their office space, with some shifting to virtual offices instead. There are also others that moved out of PEZA zones to be able to implement a 100% work-from-home arrangement.

In the Philippines, moving to new offices or changing business addresses is no mean feat. It requires updating various government registrations, such as those with the Securities and Exchange Commission, local government units, and various social welfare agencies. Arguably, the most important and tedious step is updating the company’s records with the Bureau of Internal Revenue (BIR).

Updating BIR records can be tricky if the move is from one Revenue District Office (RDO) to another. There will be a need to deregister with the old RDO, and request for migration or transfer to the new RDO. Original BIR documents, including unused invoices and receipts, would have to be surrendered to the old RDO. The taxpayer would then need new invoices and receipts, for which it has to secure an Authority to Print (ATP) from the new RDO, prior to actual printing. 

Sometimes, amidst all the ruckus, the new ATP gets delayed. Hence, there can be an intervening period — from surrender of old invoices or receipts to the old RDO to issuance of a new ATP by the new RDO — when the taxpayer does not have invoices or receipts in its possession. It can happen that only after the ATP is issued and the new invoices or receipts are printed that the taxpayer can issue invoices or receipts for sales made during the intervening period.   

An unfortunate, overlooked consequence of this is that it can be grounds for denial of value-added tax (VAT) refund applications. That is, whenever the date of the ATP on the invoices or receipts is later than the date of the transactions covered by the VAT refund, the BIR denies the application.  It cites the case of Silicon Philippines, Inc. (Formerly Intel Philippines Manufacturing, Inc.) vs. Commissioner of Internal Revenue (G.R. No. 172378, January 17, 2011) which held that a claimant for unutilized input VAT on zero-rated sales is required to present proof that it has secured an ATP from the BIR prior to the printing of its invoices or receipts. In the case, the ATP was not indicated in the invoices or receipts and the taxpayer was also unable to present the ATP, and so the Supreme Court ruled that without this proof, the invoices would have no probative value for the purpose of a refund.    

It is to be conceded that the Tax Code expressly requires persons engaged in business to secure an ATP from the BIR prior to printing invoices or receipts. However, unlike the situation cited in the Intel case, taxpayers moving to new offices had already secured a prior ATP. It’s just that at the time of the sale, the invoices or receipts printed under that ATP were surrendered to the old RDO. The facts are not really entirely the same to warrant the application of the Intel ruling.

In theory, it does sound simple enough — the new ATP should be dated prior to the date of the transactions. But the reality is that applying for RDO transfer can sometimes take a while — and it is not always the fault of the taxpayer. The BIR system tends to capture open cases from so long ago (sometimes, beyond the retention period set by the rules), such that settling the open cases can be a challenge. Delinquency verification can take some time too. Meanwhile, the taxpayer can only wait before it can file an application for ATP with the new RDO.

Some companies transferring business addresses may retain a booklet or so of their invoices or receipts, and request permission from the BIR to allow them to use the old invoices or receipts until the new ATP is issued. However, this work-around is not explicit in regulations and an ordinary taxpayer may not be able to get the necessary work-around permissions from the BIR.

It is a fact that VAT refunds in the Philippines are a difficult process. The proper substantiation of sales (output tax) and purchases (input tax) is critical, including compliance with invoicing requirements. However, does a delayed ATP bearing the new address really translate to non-compliance with invoicing requirements?

If it is, then it would make a VAT refund almost unattainable for those who transferred offices or changed their business addresses. Delayed ATP is very common. This will then make denials of VAT refunds all the more common too. Really, our hope is for this issue to be further clarified by the BIR. Clearer and simpler rules need to be provided to guide both the BIR and taxpayers to ensure that business is not unnecessarily disrupted due to transfer of business address.

VAT zero-rating is a tax characterization of the transaction based on the law relied upon by the investors. When we initially enticed them to do business in the Philippines, they were basically promised to get back the VAT they paid on their purchases to produce the zero-rated or effectively zero-rated sales. If their VAT refund applications are denied, the VAT becomes a real cost affecting not just their cash flows, but their P&L and financial ratios.

More importantly, capricious denials affect investor confidence in doing business in the Philippines. Before we know it, they might be packing up and moving offices not from one RDO to another, but out of the Philippines. Now, let’s admit that when Michael Scott left Dunder Mifflin, we were saddened. The Office was never quite the same.

Let’s Talk Tax is a weekly newspaper column of P&A Grant Thornton that aims to keep the public informed of various developments in taxation. This article is not intended to be a substitute for competent professional advice.

 

Diana Elaine B. Bataller-Simbulan is a senior manager of Tax Advisory & Compliance division of P&A Grant Thornton, the Philippine member firm of Grant Thornton International Ltd.

pagrantthornton@ph.gt.com

Sustainability is the ‘new’ language of business

FRIMUFILMS-FREEPIK

Over the years, sustainability has become an important global issue and an emerging policy priority for many countries and organizations. There has been a strong push to disclose data on this subject through various forms of public reports. A particular and increasing interest has been placed on the Environmental, Social, and Governance (ESG) Standards — the three broad areas used by companies, mostly publicly listed, to measure their ethical impact and to take accountability and responsibility for non-financial performance. Such standards are widely used as a key consideration for decisions made by investors, suppliers, and consumers, hence the increasing importance to better manage, measure, and communicate sustainability efforts.

As early as 1987, the UN Bruntland Commission Report defined sustainability as “meeting the needs of the present without compromising the ability of future generations to meet their own needs.” Fast forward, the UN Sustainable Development Goals (SDGs) were adopted in 2015. The 17 SDGs recognize that action in one area will affect outcomes in others, thus there needs to be a balance between economic, social, and environmental development. The attainment of these Global Goals is a call to action for peace, prosperity, and progress by 2030.

But what exactly does sustainability mean for a company and its stakeholders? Did the COVID-19 situation “intensify” the social responsibility of corporations and individuals? How can we better understand sustainability and gender equality as important elements in identifying risks and opportunities?

FROM ‘A NICE TO HAVE’ TO ‘THE RIGHT THING TO DO’
A strong ESG proposition can create value and every business is deeply intertwined with these standards. In 2019, the Securities and Exchange Commission (SEC) took a further step in embedding sustainability reporting in the business culture. Per the SEC, all efforts to promote sustainability reporting as a business practice are intended to hopefully incentivize companies into working on their own measures, as well as to make them aware of the reputational risks and benefits.

The data and information that companies generate and report through sustainability reporting are quite unique. Risks concerning the environment, particularly climate change and greenhouse gas emissions, were the flag bearers of most sustainability reports. At present, sustainability should go beyond environmentalism and it is timely to give equal importance to Social and Governance Goals.

THE SUSTAINABILITY AGENDA
On July 28, the Philippine Business Coalition for Women Empowerment (PBCWE), together with Investing in Women and WeEmpowerAsia Program of the UN Asia and the Pacific, organized the “WEE Mean Business Roundtable Dialogue: Sustainability as the New Language of Business.” The resource speakers were two PBCWE Member Companies who demonstrate the “gold standard” when it comes to sustainability and gender diversity initiatives — the Philippine National Bank (PNB) and Meralco.

Represented by Leia Teodoro, Senior Assistant Vice-President and Head of Marketing and Intelligence, Analytics, and Performance Group, PNB’s sustainability pillars are anchored on EESG — Economic being the other “E.” As a pioneer in the banking industry, PNB proudly commits to gender-responsive sustainability reporting through the collection and reporting of gender data in its 2018, 2019, and 2020 Sustainability Reports. PNB is the first universal local bank in the country to receive the first level of the EDGE Certification through PBCWE. Until 2021, the Bank was chaired by a female who held the post for the last 15 years.

Meralco’s Chief Sustainability Officer, Raymond Ravelo, shared that their sustainability agenda is anchored on four pillars — Power, Planet, People, and Prosperity, hence the theme #PoweringTheGoodLife. “Good life” means providing energy for all, always; protecting and preserving the planet by lowering greenhouse gas emissions and minimizing waste; nurturing sustainability from within, while ensuring the holistic well-being of all Meralco employees in safe and inclusive workplace; and, creating better lives for all, ensuring that no one is left behind. Similar to PNB, Meralco embeds UN SDG #5 (Gender Equality) and #8 (Decent Work and Economic Growth) in their Sustainability programs, such as its #Mbrace Diversity and Inclusion Program, which seeks to build a more gender-balanced and inclusive Meralco. Quoting Meralco, “True sustainable progress undoubtedly requires a shared vision and collective earnest action.”

For both PNB and Meralco, regular and consistent data collection is the best practice to accurately measure trends and form evidence-based policies. Shifting systematic barriers need to be identified and analyzed. Tracking the right indicators can help Philippine businesses build a clear pathway to maximizing the competitive advantage that workplace gender equality offers. This is a key moment of opportunity for economic and business growth, especially at this time where companies are doing their best to recover from this pandemic.

MOVING FURTHER, NOT FARTHER
The golden rule is that if an organization cannot create value, it should try to at least minimize harm — not only to stakeholders but also to employees down to the community where it operates. Companies do have an obligation to make a positive contribution to the broader community — and this is why organizations should adopt the best practices of sustainability reporting. Being sustainable means ensuring the longevity of business by maintaining profitability in the market achieved through compliance with all applicable laws, rules and regulations, and alignment with local and international best practices and standards.

Other countries have done it, and we can definitely do it too! The government, private sector, and individuals — basically everyone — have a collective responsibility for adopting sustainable practices, including the creation of gender-equal workplaces. Much has been said but, in many respects, there is still much that can be done for meaningful and measurable progress.

Sustainability is the “new” language of business and indeed “what gets measured, gets acted upon.”

(This article reflects the personal opinion of the author and does not reflect the official stand of the Management Association of the Philippines or MAP.  The author is member of MAP Corporate Governance Committee and MAP Arts & Culture Committee. She is President of MAGEO Consulting Inc., a company providing corporate finance advisory and consulting services. She is also Chair of Philippine Women’s Economic Network (PhilWEN) and Co-Chair of PBCWE. Antoinette Santos is the Policy and Communications Specialist of PBCWE. Feedback at <map@map.org.ph> and <magg@mageo.net>. For previous articles, please visit <map.org.ph>)

map@map.org.ph

magg@mageo.net

map.org.ph

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