(First of two parts)
MANILA, Philippines — When people in business talk about sustainability, consumers and the general public usually turn skeptical.
In fact, according to environmental writer and research adviser Dina Hestad, across the globe, the history of private sector engagement in sustainable development policy and practice has been rife with controversy.
There have been countless examples of powerful industry groups and businesses selfishly lobbying against progressive regulation, Hestad said in a report published by the International Institute for Sustainable Development.
But these are now outnumbered by genuine partners and transformers supporting sustainable development or driving systems change, the report said.
The report declared: “2020 was a big year for corporate sustainability pledges. Heavy hitters, such as Microsoft, pledged to achieve carbon negative status by 2030, meaning it will remove more carbon dioxide from the atmosphere than it emits.”
“Starbucks announced it would reduce its carbon emissions by 50 percent and that 50 percent of its water withdrawal for direct operations and coffee production would be conserved or replenished,” the report said.
“Mastercard, along with a number of corporate partners, announced the Priceless Planet Coalition, which is pledging to plant 100 million trees over five years. And in September 2020, BlackRock, the world’s largest asset manager, set a goal of 15 percent carbon emissions reduction across all new investments where they control energy usage,” Hestad also said in the report.
In the Philippines, the MVP Group of Companies, the sprawling business empire led by corporate tycoon Manuel V. Pangilinan, is leading private sector efforts toward sustainability.
The one in charge of such efforts is Chaye Cabal-Revilla, the chief finance, risk and sustainability officer at Metro Pacific Investments Corp.(MPIC).
Indefatigable, brilliant and passionate, she was named the 2022 Sustainability Leader of Campaign’s Women Leading Change Awards Asia-Pacific.
Recognized among the outstanding women who lead, inspire and motivate greatness in their respective fields, Cabal-Revilla rose above other nominees from all Asia-Pacific countries and was likewise heralded as the only winner from the Philippines.
In an interview with The STAR, Cabal-Revilla said the group, in fact, isn’t a latecomer in the game. It has been prioritizing sustainability early on, and in response to growing demand from investors, the MVP Group is even stepping up its efforts now.
“We have been at it long before, for decades, but now investors are also looking for it,” she said.
But why is sustainability important?
She said it’s really all about ensuring that, as a business, you will put in place the right measures so that your impact on the environment, the community and to the world, is positive. This will also ensure that your business will last for generations and generations to come.
“Sustainability is all about accounting for your impact. It’s not just about the environment. Our approach to sustainability is holistic – encompassing EESG (economic, environment, social, governance) impacts,” Cabal-Revilla said.
Sustainable Philippines
The MVP Group walks the talk, and Cabal-Revilla explains how. The group has been implementing sustainability measures within its different companies and through partnerships.
Under Cabal-Revilla’s leadership as MPIC’s chief sustainability officer, the group launched the MVP Gabay Advocacies for a Sustainable Philippines, with six umbrellas focused on the environment, education, livelihood, health and sports, community development, and youth empowerment.
Furthermore, MPIC continues to form long-term partnerships with other private companies and government agencies to protect the country’s flourishing biodiversity.
Circular economy
There are other initiatives, including those with partners.
Notable collaborations include the partnership with Laguna Lake Development Authority for the protection of Laguna Lake, the largest lake in the Philippines and one of the significant sources of freshwater; with ASEAN Centre for Biodiversity to address biodiversity loss in the region; and with Basic Environmental Systems & Technologies Inc., one of the country’s waste recyclers, to implement an effective and cost-efficient solid waste management program that aims to help minimize waste pollution through the promotion of proper segregation at source and recycling that supports a circular economy.
MPIC also became the first private sector partner of the Department of Environment and Natural Resources in promoting urban biodiversity.
National progress
MPIC is determined to live out its purpose of contributing to national progress for the upliftment of the lives of every Filipino. It has developed a framework to continue to inspire change toward creating a better future for all.
Beyond profit
Within the company, MPIC has embraced a mindset of “beyond profit.”
Thus, as the first chief sustainability officer of MPIC, Cabal-Revilla has transformed the business beyond being purely profit-driven, future-proofing its operations and its advocacies for generations to come.
“Sustainability and the passion for inspiring positive change have always been the backbone of the work that we do, allowing us to do good while doing well,” she said.
It’s not a guessing game for MPIC, however.
It has crafted a sustainability playbook, which serves as the company’s blueprint and this is aligned with the 17 United Nations Sustainable Development Goals.
The group’s sustainability agenda is furthered by the Board Governance and Sustainability Committee, as well as the creation of the MPIC Group Sustainability Council, which aims to harmonize and bring together the group’s sustainability initiatives aimed to create a collective positive impact for all stakeholders.
Early this year, with Cabal-Revilla as the Office of the Chairman’s sustainability lead, the council was expanded to involve the whole MVP Group of Companies.
In May 2022, the company also released its board-approved Business Development and Investments Policy with investments blacklist and due diligence focus areas. This showcased how MPIC integrates sustainability not just in its operations but also in its investment decisions.
MPIC is also the first in Southeast Asia to join the Taskforce on Nature-related Financial Disclosures (TNFD) Forum, a global multi-disciplinary consultative network of institutional supporters that provides an important complementary role in the development of the TNFD Framework.
Bearing fruits
The company’s efforts did not go unnoticed. MPIC is once again a leading multi-sector holding company in the Asia Pacific region after receiving an Environmental, Social and Governance (ESG) Risk Rating score of 11.0 from Sustainalytics in March 2022.
This score places MPIC in the “Low Risk” category of experiencing material financial impacts from ESG factors.
Furthermore, the score positions MPIC in the top three percent of companies in Sustainalytics’ Diversified Financials Industry. MPIC has also been recognized by Sustainalytics as an ESG Industry Top Rated company as well as an ESG Top-Rated Regional company in 2022.
Sustainalytics is a global leader in ESG research, ratings, and data. With coverage on 14,000 companies globally, Sustainalytics’ ESG Risk Ratings are designed to help investors identify and understand financially material ESG risks and how they might affect the long-term performance for investments.
“Sustainability is deeply embedded in our key businesses and investment strategies, allowing us to do good while doing well,” said Cabal-Revilla.
“We are proud to be recognized as a top ESG performer, and will continue to become a catalyst for sustainability in the country while providing essential services to improve the lives and livelihoods of the Filipinos,” she added.
MPIC was assessed by Sustainalytics on its exposure to industry-specific material ESG risks and how it is managing those risks. Sustainalytics’ multi-dimensional way of measuring ESG risk combines the concepts of management and exposure to arrive at an assessment of an ESG Risk Rating that is comparable across all industries.
Accountability
MPIC chairman, president and CEO Manuel V. Pangilinan said the company is relentless in fulfilling its sustainability commitment.
“Our board and senior management are relentless in our pursuit to drive MPIC toward sustainable growth. We are committed to continuously foster organization-wide accountability for sustainability,” he said.
MPIC is committed to helping achieve the 2030 Agenda for Sustainable Development by managing its impacts, improving its performance, and tracking its progress against the 17 United Nations Sustainable Development Goals.
(To be continued)