2015 Issue 2
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The Official Publication of the Aboitiz Group • www.aboitiz.com • 2nd Issue 2015 Aboitiz Group achieves Project Forward CSR 2.0: a defining Risk Maturity Level 4 in full force to metric towards inclusive P. 5 achieve 1AP & sustainable growth P. 19 P.43 contents Cover Story Banking CSR 4 The Role of the Corporate Center 30 UnionBank celebrates 33 years of Making Da Diff 43 CSR 2.0: A defining metric towards inclusive & sustainable growth 31 First-ever UnionBank Mr. & Ms. DNA Ambassadors named 44 Education 45 Health & Well-Being Corporate Center 31 UnionBank Internal Audit Division bags top 50 Other News 5 Aboitiz Group achieves Risk Maturity Level 4 certification 32 UnionBank RBC Makati Region holds 51 WeatherPhilippines conducts its first 6 Coaching and Mentoring Course launched Weather 101 training for an LGU in the Aboitiz Group investment briefing 32 CitySavings 2015 Sales Rally 51 Understanding our weather empowers the 7 Aboitiz honors bankers and brokers at Filipino nation annual cocktail parties 33 CitySavings launches new branches in Luzon, 8 Key learnings from the Aboitiz brand Mindanao, and NCR forum 33 Shaping the financial industry with 10 22 Aboitiz Toastmasters inducted in Taguig UnionBank’s UITF RAFI 11 Aboitiz Groupwide Inspired by Passion 34 MAA and AAL: Recognizing CitySavings’ pillars 52 RAFI’s Kool Adventure Camp promotes Disaster Team Awards 2014 Response Principles at RESCYouth 2014 12 EIA Messages 53 Cash aid for Samar families affected by Food Typhoon Ruby 14 Aboitiz kicks off Groupwide Sportsfest 2015 53 Cebu is #6 PH city most vulnerable to 15 The Aboitiz Honor Roll 35 Bohol earthquake survivors get livelihood climate change back on track 54 RAFI and SM Foundation’s programs for 36 Egg machines jumpstart livelihood for Bogo City Yolanda survivors Power Yolanda survivors 55 RAFI, DepEd and Cebu LGUs to build schools and daycare centers 16 AboitizPower ManCon 2015 36 Salto excites at World Gamefowl Expo 2015 56 RAFI, partners to fund YMA scholars’ projects 19 Project Forward in full force to achieve 1AP 37 Pilmico and Winrock join forces to bolster swine population in Mindanao 56 ‘Sinug sa Casa Gorordo’ proceeds despite 20 ARM Message museum’s temporary closure 38 ‘Just’ desserts from Pilmico’s Sweet 22 AboitizPower Kabisigs create future Integrity Corner organization through ‘Inyovation’ 23 Hedcor’s 14-MW Sabangan hydro 80% Sustainability complete as of end-2014 57 Preserving hawksbill turtles in Davao City 24 Davao Light implements Feed-In Tariff Land 58 Taking a step in the healthier direction Allowance 39 AboitizLand and CIPDI ink MOA with Pag- 59 Davao Light’s video and photo contests 24 Davao Light honors contractors and ILP IBIG Fund promote sustainable electricity use participants 39 AboitizLand launches its refreshed brand 60 Aboitiz Race 2 Reduce 25 New year, new life for Brgy. Gumitan, Marilog District 72 Aboitiz Group sustainability highlights in 2014 26 Davao Light hails 2014 Elektrisyan ng Bayan Infrastructure 26 Electricity dieting tips from Davao Light 27 EnerZones, NGCP conduct Overcurrent 40 APO Agua signs PH’s largest private bulk Column Protection Relay Seminar water supply deal in Davao 61 Eye Tech by Hoton Elicano 27 SEZ conducts ILP orientation for customers 28 SEZ installs equipment to deter power Construction Special Feature interruptions 41 Builder of choice here and abroad 63 Warren Buffett’s 2014 Letter to Berkshire 28 WAM goes online at SEZ Hathaway Shareholders 41 Re-tiring at 60 29 MEZ Geographic Information System project completed 42 Mobile training reaches more who seek better lives 29 BEZ upgrades Nangka National High People School electrical system 42 Metaphil delivers global equipment 66 DRAAE Awardee 2014 Bill Haboc Aboitiz Equity Ventures, Inc. CONTRIBUTORS Corporate Center Richard Bulaon Banking Land President & CEO Chairman Rogie Abala MJ Cendaña Claire Ann Aventurado Arianne Manzo Erramon Aboitiz Jon Ramon Aboitiz Belle Areta Alfred Cerezo Alva Michelle Cabriga Maan Capistrano Enjie De Guzman Malu Evaristo Construction Editor-in-Chief Hoton Elicano Mary De Guzman Ilene Geronimo Ronaldo Amodia Dexter Gianan Fermin Edillon Jeannet Zaballero Zeny Novabos Susan Valdez Robert McGregor Jessimer Enriquez Jomes Ibañez Ricky Lacson Jade Gamas Carissa Limjap Foundation Managing Editor Creative Directors Thet Mesias Bill Haboc Reformado Danny Cerence Franz de la Fuente Tori Vicente Noel Modesto Karen Macalinao Paula Ruelan Rechiel Cordova Ricky Sibonghanoy Timi Nubla Grace Migue Mantissa Samson Louie Boy De Real Carlo Franco Gloidan Papas Dennis Montebon Jovy Tan Associate Editor Mia Zamora Claren Padinay WeatherPhilippines Cristina Biyo Sherilyn Puno Food Lia Neri Power Alex Venturado Rhea Embalzado Circulation Officer Endika Aboitiz, Jr. Jerry James Villarva Pam Liwag RAFI Yhol Colegado Ruann May Barace Rene Martel The paper used in the inside pages is 100% biodegradable and recyclable. ABOITIZ EYES 3 2nd Issue 2015 Cover Story The Role of the Corporate Center The AEV Corporate Center plays a fundamental These roles have served us well as we moved from a centralized structure to a matrix structure role in supporting the Aboitiz Group’s growth described as centralized decision-making, resulting to local and aligned execution. The centralized strategy. It is a key enabler in the execution of decision-making is done at the Group Management Committee (ManCom) level, where Corporate our strategy, allowing Corporate Center units Center units and SBUs/BUs recommend programs, practices, and initiatives that they think can very and Aboitiz business units (BUs) to focus on well be implemented across the Group. doing what they do best. Once an initiative or a project is approved at the Group ManCom level, it is then implemented As we pursue further growth, we shall across the Group, allowing each SBU/BU to tweak or customize it based on the nuances of their strengthen the Corporate Center as the respective businesses. A recent example of a Group ManCom decision is the definition of the knowledge center, governance agent, and Aboitiz Core Values—decided centrally, but executed locally in each BU to align with what was business partner of our strategic business units cascaded across the Group. (SBUs). It will continue to introduce best-in- class knowledge and practices, take the lead KNOWLEDGE CENTER. CCUs serve as key resources in their areas of expertise, such as: in implementing Group initiatives, and provide REPUTATION STRATEGY & RISK MGMT. IT HR LEGAL ACCOUNTING TREASURY AUDIT value-added services. It will also be responsible MGMT. INVESTMENT for defining policies and standards that will bring Enterprise Corporate Deal Struc- Oracle Attracting, Litigation & Accounting Treasury Operational Risk Man- Commu- turing & Enterprise retain- Labor Law Standards & Debt & Risk everyone across the Group on the same level of agement nication & Execution Resource ing, and & Tax Structuring Audits Capability Creative Planning optimizing Rulings Products excellence. Building Production A-People Knowledge Center BUSINESS PARTNER. CCUs offer different value-added services related to their areas of expertise, such as: Is the center of excellence in their REPUTATION STRATEGY & RISK MGMT. IT HR LEGAL ACCOUNTING TREASURY AUDIT respective areas of expertise MGMT. INVESTMENT Strengthens its expertise in order to Risk Media Financial & Data Center Executive External Assistance Management Audit Management Relations Strategic Facilities Search Counsel in Dealing & Execution of Services become a go-to resource for the Group Process & Issues Analysis Management With Daily & Long- Integration & Manage- & Litigation External Term Financial for certain disciplines Risk Finance ment Management Auditors Products & Services Business Partner Assists BUs in implementing initiatives GOVERNANCE. CCUs ensure important governance processes are upheld in their areas of focus: related to the corporate center units’ REPUTATION STRATEGY & RISK MGMT. IT HR LEGAL ACCOUNTING TREASURY AUDIT area of knowledge MGMT. INVESTMENT Provides services where it is practical Group RM Brand Man- Investment IT Security Succession Legal Risk Accounting Standardized Audit and where economies of scale can be Governance agement Committee Manage- Manage- Consolida- Financial Standards Structures, Guidelines Process ment ment tion Structures & achieved Policies and & Compli- Documen- Guidelines ance tation Governance Develops policies and standards for implementation and compliance across As our businesses evolve and grow to meet new challenges, the AEV Corporate Center will be the Group there to enable BUs to meet their business objectives. Currently, many of the Corporate Center Introduces and monitors best practices, teams continue to carry out their roles through various Group councils and committees, where policies and standards initiatives are further concretized collectively, and where aligned execution all across the Group is ensured and monitored. ABOITIZ EYES 4 2nd Issue 2015 Corporate Center Aboitiz Group achieves Risk Maturity Level 4 Risk Maturity Level 4 puts Aboitiz in the Top 15% of all global organizations rated by AON annually "Enterprise resiliency is essential in order to achieve our mission to create long- term value for all our stakeholders."-EIA The Aboitiz Risk Management Team held its mission to create long-term value for all our Over the last three years, AEV and its business 3rd Risk Management Forum last February 23 at stakeholders,” EIA told the forum’s participants. units have worked together in developing