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The Action Heats Up at the Business Climate Action Summit

By Gene Gregorio

At the plenary session of the Business Climate Action Summit, Philippine Business for the
Environment (PBE) Pres. Howard Belton stressed, “The Philippines is very vulnerable to climate
change. Business needs to take the lead!” The Summit was attended by hundreds of CEOs/
Senior Executives and industry participant across all sectors. I was fortunate to attend the
Summit as a delegate representing Agricultural Inoculant Corp (AIC) upon the invitation of
Unilever’s Chito Macapagal and Joy Isla.

Climate Change Commission Vice-Chair Lucille Sering launched the summit with a talk on how
business can participate and respond to the challenge of climate change. Sering mentioned the
role of R.A. 9729 (An Act Mainstreaming Climate Change into Government Policy) in creating
the Climate Change Commission. The Commission then drafted the National Climate Change
Action Plan (2011-2028) to address the adverse effects of the phenomenon on our food and
water supply, ecosystems and how it causes extreme weather events. Once the globe’s
temperature goes beyond the 2% increase threshold, the effects would be irreversible.

As such, the Commission’s vision is to help make the country climate risk-resilient. Its goal is to
build the adaptive capacity of communities. To do this, it has listed the following strategic
priorities to address: food security, water sufficiency, human security, sustainable energy, and
climate-friendly industry and services (such as Waste Management).

The Commission also plans to declare prohibited ecological areas as Eco-Towns where the
government plans to partner with the private sector for reforestation, the rehabilitation and
building of mangroves, and developing ecotourism. Sering also mentioned plans of tapping into
the Lifestyle of Health and Sustainability (LOHAS) markets so entrepreneurs can venture into
organic food, green buildings, alternative transportation, ecotourism, alternative energy, and
natural lifestyles much like Western countries have already made these mainstream.

Sering added that waste has increased by 9% in the century’s first decade and that 90% of it is
wastewater. As such, she said that there is a huge business opportunity for the private sector in
the areas of waste recycling and food security through climate-resilient and sustainable
agriculture and food diversification. She ended by reminding participants that the Philippines is
in the list of Top 10 countries whose economic activities are at risk from the intensification of
storm surges.

PBE Pres. Howard Belton followed with a discussion on the overview of the business covenant
and the rationale for the Summit which is to gain support for five major projects:

1. Sustainable transport - clean fleet project

2. Sustainable energy – efficiency measures
3. Solid waste – reduce, segregate, recycle
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4. Sustainable agriculture and forest ecosystems – reforestation and mangrove

rehabilitation; and
5. Sustainable cities and buildings – green buildings and infrastructure

After the plenary, the coffee-driven delegates broke up into the cluster working sessions. These
focus areas represent a coalition of companies which have a priority concern in their chosen
areas and a commitment to work together to reduce their environmental impact and greenhouse
emissions. These are clustered as follows:

Businesses for Environmentally Sustainable Transport – The most advanced of the five clusters
with Clean Fleet Management as its anchor program, as a result of a successful pilot project
conducted in 2009 by Meralco with the help of the Clean Air Initiative for Asian Cities and PBE.

Sustainable Energy Cluster – It promotes smart usage and generation of energy to meet the
current needs without harming the environment and compromising future energy supply through
energy efficiency and renewable energy programs. It is led by the European Chamber of
Commerce in the Philippines and First Gen Corporation. Its anchor project is the Smart Energy
Program to train and assist companies to develop and implement energy-efficiency programs.
The members of the working group are: ECCP, First Gen, International Finance Corp, First
Carbon Solutions, Holcim, Meralco, the Asia Society for Social Improvement and Sustainable
Transformation, Inc., and the Center for Appropriate Technology.

Solid Waste Action Team – Aims to share best practices on reduction, resource recovery, and
recycling/upcycling and to demonstrate their application to the management of “difficult” waste
streams through practical, replicable, scalable examples that not only reduce waste, but also
reduce costs and cut carbon. The cluster is led by Unilever and the Philippine Business for
Social Progress (PBSP) in partnership with the following members of the working group:
Jollibee Foods, Ayala Foundation, Holcim/ Geocycle, Smart Communications, SM Supermalls,
the Earth Day Network, and PBE.

Sustainable Cities and Buildings Cluster – Aims to transform the building industry into a climate
friendly industry, to document best available practices on available greening technologies, and
to encourage builders and consumers to adopt urban greening measures. Its anchor project is
the Promotion of Best Practices of existing urban greening such as “Cool Roofs”/ Light Color
Roofing to reduce the heat island effect. It is led by Philippine Green Building Council with its
partners: Holcim, L.A. Ducut Company, Green Architecture Advocacy, Earth Day Network,
Coating and Fireproofing Specialist Inc., and key property developers.

Sustainable Agriculture and Forest Ecosystems Cluster – Promotes positive project

contributions in its sector. It is led by the Alyansa Agrikultura in partnership with the Tambuyog
Development Center, and the Energy Development Corporation (EDC). Alyansa’s Mangrove
Rehabilitation Program aims to enlist companies in efforts to save sea-based livelihoods
threatened by climate change. EDC’s BINHI Program aims to bridge forest gaps, provides
forest-based livelihoods to forest dwellers, promotes ecotourism, and preserves the gene pool
of rare and endangered native trees.
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The Summit aims to follow through on the commitments of business to reduce impacts on
climate change through action-oriented events aiming to:
• Review implementation progress, barriers, and needed actions
• Share strategies in focus areas and discuss how to scale these up
• Recruit and renew industry commitment for a Climate Action Road Map with clearer
strategies, leadership/roles; and
• Agree on the 2011 Milestones and well-defined targets which will comprise the key
Summit outputs, representing the business contribution to national efforts to fight climate
change, for presentation to President Aquino and the Climate Change Commission.

Not having the ability to Quint-locate, I was only able to attend two cluster working sessions
after a light lunch of Waldorf salad with salmon strips and Rosemary chicken. In the Solid Waste
Action Team Cluster working session, Chito Macapagal explained how Unilever was able to
address trash through their solid waste management measures. In the course of doing so, they
discovered the following statistics on sources of waste:

• 66% come from residential areas

• 21% come from industrial activities
• 13% come from wet markets; and
• 75% of organic waste unnecessarily end up in landfills

Chito Macapagal’s proposed solution is the composting of biodegradable trash into organic
fertilizer and the recycling of plastics to oil. Agricultural Inoculants Corp would certainly want to
help in the area of helping this cluster convert trash into organic fertilizer in the varied
communities they support.

In the Sustainable Agriculture and Forest Ecosystems Cluster working session, Alyansa
Agrikultura’s Ernie Ordonez said that paradoxically agriculture contributes tremendously to
greenhouse gases. His figures on greenhouse contribution are:

• 19% come from industry; and

• 31% come from agriculture and forestry

He then briefed the audience on Alyansa’s initiatives in Organic SRI technology for rice, coco
coir for coconuts, fishponds from mangrove rehabilitation. BINHI adequately expounded on
EDC’s reforestation program.

With this first exposure to corporate action on climate change, I am convinced that this summit
generated more than just hot air. It has won the commitment of responsible corporations by
raising the temperature of awareness and action to help the country reach its goal of becoming
climate risk-resilient in the perilous 21st Century. And it has strengthened Agricultural Inoculant
Corp’s resolve to be part of the solution.