ESG in the Power IndustryAboitizEyes
While the COVID-19 pandemic has brought unparalleled challenges around the world, it has also created an unprecedented momentum for deep and structural change in society and industries.
The goal now is to shape a resilient, sustainable economy for all — one that is mutually beneficial for both businesses and their communities.
The energy industry is at the heart of this. Recent events have accelerated the focus on environmental responsibility and broader Environmental, Social, and Governance (ESG) measures. Now, more than ever, ESG in the power industry is a pressing priority.
The industry must adapt to a future that adheres to ESG practices. Read on for more on this rising imperative and how it continues to transform the power industry.
Why should ESG initiatives matter to the power industry?
ESG concerns should be a matter of utmost importance for players within the power industry. This hinges on the “energy trilemma,” a concept that pops up frequently in energy industry literature and politicians’ speeches.
The trilemma is this: how does one balance energy security, energy equity, and environmental sustainability when these three things are, more often than not, conflicting aspects of energy production?
Many energy providers settle for a trade-off between three goals, in which two are met, but at the expense of the third. There is this notion that humanity is putting a greater squeeze on the planet’s resources and it can’t be ignored any longer. Energy production must balance the trilemma.
Citizens, governments, and the media are putting the spotlight on corporations and demanding action where energy providers must achieve all three goals, and do so in a way that provides value for the company, the environment, and its host communities.
People now want sustainable power sources for their homes and businesses, making the energy sector responsible to address ESG issues and challenges with collaborative, proactive steps designed to deliver sustainability goals. In doing so, industry players are better positioned to meet the proposition of the energy trilemma.
How do we create sustainability in the energy industry?
Sustainability in energy means providing reliable power supplies, fuel diversification, and energy security — all while aiming to make it accessible to consumers and conserve the nation’s natural resources as much as possible.
In line with our purpose of driving change for a better world, and providing a safe and bright future for our fellow Filipinos, we in the Aboitiz Group strive to create sustainability at every point of our business.
This includes our largest subsidiary, AboitizPower, where we commit to sustainable business operations, guided by our strong environmental, social, and governance standards and practices. We believe that everyone should be able to enjoy clean, reliable, efficient power no matter where they are.
That is the concept of Cleanergy: yielding reliable, ample power that is generated responsibly, and priced competitively. Doing so allows us to have the least adverse effects on our environment and host communities, while providing affordable electricity.
This is possible through our several hydroelectric, geothermal, solar power, and thermal power plant facilities. Through them, we can supply the country’s ever-increasing energy needs through sustainable and efficient means.
The country’s energy demand is increasing as the economy is developing. It is important to be cognizant and realistic about the energy goals of the country and ensuring that there is adequate baseload supply to meet the country’s economic growth.
AboitizPower firmly believes that balance is the key to achieve growth while being sensitive to the socio-economic concerns of the Filipino consumers. The company aims for a 50:50 balance between renewable and thermal portfolios by 2030, in support of the global movement for clean energy. We plan to invest in more renewable energy (RE) projects, both domestically and internationally; and we are currently working on several RE projects focusing on solar, wind, and hydro.
Our latest ESG efforts
Sustainable, equitable practices have always been at the core of AboitizPower, our power generation and distribution subsidiary, as well as our ESG strategy. In our continuous efforts to improve how we do business while keeping our environmental impact to a minimum, we have adopted countless projects, partnerships, and initiatives to improve our triple bottom line.
At AboitizPower, we believe that with increasing uncertainty comes opportunities for change. To sustain our operations, and create a brighter future, we must always look for ways to improve. That said, we also know the value of community in driving innovation.
To increase our agility, adaptability, and to better supply our customers, we recently partnered with the Plug and Play community, a global innovation platform that connects change-makers and leading organizations. We know that through this unique ecosystem, we can come up with innovative solutions that will help us in our journey towards a more sustainable future for all.
In line with our continuous efforts to provide sustainable power to all, we also recently broke ground in Pangasinan for our second solar venture in the area, after our 59-MW peak solar plant in San Carlos City, Negros Occidental.
The solar power plant, named Cayanga Solar, is a very significant endeavor for us at AboitizPower, as it marks a new chapter in our journey towards renewable energy. With this project, we expect to accelerate our campaign for sustainability and drive our country towards green energy sources.
In yet another partnership, we were able to provide the first fully electric, free-ride shuttle service in Mindanao. This was made possible through our collaborative efforts with the city government of Davao, GET Philippines, and QEV Technologies of Spain.
Known as the BEST Bus project, we provide the use of environmentally-sustainable mini buses for the free use of the community. This was done in the pursuit of promoting sustainable practices, reducing greenhouse gas emissions, and improving public transit within the community.
In its first year of implementation, the project saw huge accomplishments — over 166,000 passengers were served, helping Filipinos in their daily struggle of commuting. The project is not only eco-friendly, but provides safe and comfortable transport options for people with disabilities (PWDs), senior citizens, and pregnant women.
These are just a few of our recent ESG initiatives and practices. Through many more ongoing projects in various provinces and cities, we at AboitizPower can empower the communities we serve, and best utilize our resources to build a better future for our people.
The dramatic increase in attention to ESG in the power industry has affected organizations like AboitizPower in many ways. Now, more than ever, our strategic directions are geared towards ensuring sustainability is at the core of our business operations.
This way, we can stay ahead of the trends and create mutually-beneficial energy solutions that serve the interests of our communities and our environment.
Together with our partners, we at AboitizPower seek to power up every home and business with reliable, affordable, and sustainable energy solutions. Click here to learn more about how we champion sustainability for the welfare of each and every Filipino.