Beruflich Dokumente
Kultur Dokumente
MA N L A WAT E R C O M N C
2 0 1 01 0S U U S TA I I N A B I L II T YY R R E P O T T 20 S ST A NA L T E P OR R
TABLE OF 1 CONTENTS 2
6 10 14 24 30 38 44 46 47 48 55
About this Report Message from the Chairman and President Company Profile Our Approach to Sustainability Empowering Employees Empowering Customers Protecting the Environment Enhancing Sustainable Development Engaging Stakeholders Continuing Our Commitments Our Sustainability Report Card GRI Index Stakeholders Commentaries
T
1.7M 24/7 100% 11% 36 500
Urban poor customers Water availability amidst El Nio Customer satisfaction rating Non-revenue water Wastewater treatment plants Hectares of Marikina Watershed for rehabilitation
he United Nations recent declaration of access to water and sanitation as a fundamental human right is consistent with our commitments at Manila Water.
As a water and wastewater services provider, we find ourselves in a unique opportunity to create a significant difference in the lives of the 6.1 million people we serve in the East Zone of Metro Manila. By delivering clean and affordable drinking water 24/7 even in extreme cases of drought or flood, and by bringing reliable, quality sanitation services, we help our customers from all walks of life carry out their day-to-day activities so they can engage in more productive work and better realize their full human potential. However, the fact that an estimated 884 million people around the world still lack access to potable water, while more than 2.6 billion still do not have access to sanitation clearly manifests the severe conditions afflicting a large segment of the population. Manila Water endeavors to do its share in alleviating the problem by taking the triple bottom line approach to address issues in areas where we operate. This approach aligns economic viability, social responsibility and environmental sustainability in all aspects of our business, creating shared value for the Company and all stakeholders. The triple bottom line also serves as the guiding force for our sustainable development initiatives.
P3.99B Net income with 23% growth 409.8 Billed volume in mcm 50,000 Jobs generated through
investment program plan
International Water Association (IWA) awards, cementing Manila Waters place as among the worlds best in water efficiency. Clearly, the TPSB is a compelling program that not only sustains communities but also integrates well into our core business. As a result of providing reliable access to water to all our customers in the East Zone, water sales increased from the previous years 396 million cubic meters (mcm) to 409.8 mcm in 2010. This contributed to a double-digit net income growth of 23 percent this year from P3.23 billion to P3.99 billion over the same period.
The El Nio also highlighted the urgent need to develop new water sources to address the serious risks related to our dependency on one primary water source, as well as the increasing demand for water by the East Zones growing population. Moving forward, we will place a high priority on finding long-term and sustainable alternative water sources. Our immediate imperative will be to activate Laguna Lake as a water source for an initial allocation of 50 to 100 mld, a project which we aim to be operational in the next 18 to 24 months.
We now have 36 wastewater treatment plants, increasing our capacity to a total of 135 mld, which is equivalent to a 45 percent year-on-year increase as compared to 2009s 93 mld. We expect to further increase treatment capacity by 200 mld by commissioning three more STPs within the next three years. These initiatives are essential toward contributing to the clean up of the three rivers. An encouraging sign of the progress on these efforts were the 12 Lakan ng Lawa or Chieftain of the Lake Awards presented to Manila Water by the Laguna Lake Development Authority, the highest recognition given by the agency to any company in 2010. These awards recognize our exemplary performance in environmental protection and our consistent compliance with the agencys effluent standards and regulatory requirements.
Customer Satisfaction
As a result of our strong focus on maintaining customer service levels, the 2010 Public Assessment of Water Services (PAWS) survey, which was independently conducted by the University of the Philippines National Engineering Center (UPNEC) indicated that 100 percent of surveyed customers gave Manila Water a very good ratingthe highest possible in the PAWS study. This is the third straight year that Manila Water has achieved this rating. Similarly, the recently launched Public Assessment of Sewerage and Sanitation (PASS) survey reported that 100 percent of surveyed customers are highly satisfied with our wastewater services.
We believe that experience remains the best source of lasting development. Thus, we complement training with robust cross-posting to strengthen learning through actual work and first-hand leadership experiences. This approach to talent development allows us to strengthen our capability to deliver our current commitments, and at the same time, prepare the organization and our people for the challenges ahead.
Industry Accolades
Our experience at Manila Water serves as a testament to the effectiveness of public-private sector partnerships in realizing fundamental human rights such as access to potable water and sanitation. We have come a long way from the situation that met us at the start of the concession. One of our early partners, the Department of Trade and Industry Center for Industrial Competitiveness recognized our complete transformation and awarded Manila Water the Pro-active Program Achievement Hall of Fame Award in 2010. This accolade puts Manila Water on the map of setting industry standards on labor quality, productivity and community relations practices in the Philippines. On the same year, Manila Water was the only Philippine company to receive the Silver Award in the CSR Leadership Category of the 2nd Global CSR Awards in Singapore. This award affirms Manila Waters unique approach to doing business through the triple bottom line as we consistently align our social and environmental objectives with our business goals.
We thank our Board of Directors, the management team and our employees for their support and hard work to achieve all the milestones we have set during the year. Furthermore, we extend our appreciation to our stakeholders from government agencies and units, international aid agencies, non-government organizations, academe, media, as well as our investors, suppliers and business partners who have helped us achieve our triple bottom line. Finally, we thank our customers for constantly inspiring us in our quest to provide clean and safe water to more communities, and in driving us to secure the future today.
Company Profile
Overview
Manila Water Company, Inc. is a private utility agent and contractor engaged by the state-owned Metropolitan Waterworks and Sewerage System (MWSS) to improve the infrastructure and delivery of water and wastewater services in the East Zone of Metro Manila, Philippines.
Operational Setup
Core services
Water supply treatment and distribution Wastewater (sewerage and sanitation) Customer service
Regulatory framework
Manila Water operates under a highly regulated environment to guarantee quality services to customers. MWSS Regulatory Office monitors Manila Waters performance relative to the service obligations defined in the concession agreement and implements a reward and penalty system through rate rebasing exercises. Department of Health (DOH) ensures customer health and safety by monitoring water supply compliance with Philippine National Standards for Drinking Water (PNSDW). Department of Environment and Natural Resources (DENR) oversees the utilization and conservation of water bodies in coordination with its attached agencies: National Water Resources Board (NWRB) regulates the use and allocation of water resources; Laguna Lake Development Authority (LLDA) enforces pollution control standards in wastewater effluent released to water bodies leading to the Laguna Lake.
Corporate Development
Project Delivery
Service area
Manila Water services the East Zone concession area, which includes the eastern portion of Metro Manila and the adjacent province of Rizal. The area spans 1,400 square kilometers and covers 23 cities and municipalities.
Corporate Resources
Business Areas
Balara Cubao Marikina AntipoloRizal Mandaluyong Makati Taguig Pasig
Also in the same year, Operations Group Director Frank Beaumont retired after a ten-year career at Manila Water. Project Delivery Group Director Geodino V. Carpio subsequently assumed the role of Mr. Beaumont. Establishment of Quality, Environmental, and Health and Safety (QEHS) Policies In a move to further optimize operations and delivery of services, Manila Water established QEHS policies which are complemented by related programs in order to promote best practice within the organization. Said policies are communicated to all employees, service providers and business partners, and are subject for review at least once a year.
Certification International Philippines Managing Director Renato Navarrete (front row, fourth from left) formally hands Manila Water the ISO 14001:2004 and OHSAS 18001:2007 certifications symbolic of the Companys compliance with world-class environmental, health and safety management standards.
Regulation and Corporate Development Group Director Perry Rivera receives the prestigious Water Project of the year Award from Her Majesty Queen Noor of Jordan during the 2010 Global Water Awards in Paris.
Director for East Zone Business Operations Abe Basilio and Group Director for Regulation and Corporate Development Perry Rivera receive the Grand Prize for Operations/Management Category in the IWA Project Innovation Awards from IWA Member and Water Environment Research Foundation Vice Chair of the Board William Dee.
LLDA confers 12 Lakan ng Lawa Awards to Manila Water in the 5th Public Disclosure Program and Awarding of Industries Environmental Performance.
Company officials and employees led by retired Operations Group Director Frank Beaumont, directors Abe Basilio, Atty. Rene Tale and Erick Reyes, as well as Union President Ed Borela accept the DTI Hall of Fame award from DTI officials led by Efren Leao and Virgilio Fulgencio.
Sustainability and Corporate Social Responsibility (CSR) Silver Award, 2nd Global CSR Awards, Pinnacle Group International for promoting the practice of all aspects of CSR by integrating sustainability into the Company's overall business model. 2nd Best CSR in the Philippines, FinanceAsia as per the ratings given by finance leaders and professionals. Investor Relations 4th Best Investor Relations in the Philippines, FinanceAsia as per the ratings given by finance leaders and professionals. Communication Programs Award of Merit, Philippine Quill Awards, International Association of Business Communicators (IABC) for the Lakbayan Water Trail Education Program that educates stakeholders on water and wastewater concepts and issues, and encourages participants to protect the environment and mitigate the effects of climate change. Award of Merit, Anvil Awards, Public Relations Society of the Philippines (PRSP) for the Lakbayan Water Trail Education Program. Certifications ISO 14001:2004 and OHSAS 18001:2007 certifications, International Organization for Standardization (ISO) given to five Manila Water facilities (Balara Pumping Station, Balara Treatment Plant 2, Manila Water Laboratory Services, South Septage Treatment Plant (SpTP), and UP STP), confirming the Companys sound and world-class environmental, health and safety management system. Procurement Manual Certification, Foundation of the Society of Fellows in Supply Management, Philippine Institute for Supply Management and BayanTrade, Inc., which attests Manila Waters efforts and unwavering commitment to uphold transparency and good governance in all aspects of procurement and supply chain management.
NOMINATIONS COMMITTEE The committee reviews and evaluates the qualifications of all persons nominated to positions in the Company which require appointment of the Board. It encourages the selection of a mix of competent directors, each of whom can add value and create independent judgment as to the formulation of sound corporate strategies and policies. Jose L. Cuisia, Jr.* Jaime Augusto Zobel de Ayala John Eric T. Francia Oscar S. Reyes* Chairman Member Member Member
REMUNERATION COMMITTEE The committee is given the power and duty to determine and approve all matters relating to the remuneration and benefits of the Companys officers and directors. It continuously evaluates and recommends, for Board approval, pertinent guidelines on executive compensation, particularly with regard to non-monetary compensation such as the stock purchase plan. Oscar S. Reyes* Gerardo C. Ablaza, Jr. Fernando Zobel de Ayala Jose L. Cuisia, Jr.* Chairman Member Member Member
EXECUTIVE COMMITTEE The committee acts by the majority vote of all its members on specific matters within the competence of the Board, as may from time to time be delegated to it in accordance with the Companys By-Laws, except with respect to certain matters specified in the By-Laws and Corporate Governance Manual. Fernando Zobel de Ayala Gerardo C. Ablaza, Jr. Antonino T. Aquino John Eric T. Francia Chairman Vice-Chairman Member Member
PROXy VALIDATION COMMITTEE The committee is empowered to pass on the validity of proxies. Ma. Lourdes P. Miranda*** Atty. Jhoel P. Raquedan*** Representative of external auditor COMPLIANCE OFFICER Chairman Member Member Luis Juan B. Oreta***
Following the Companys By-Laws, each director receives a reasonable per diem allowance for attendance at each Board meeting. As compensation, the Board receives and allocates an amount of not more than 10 percent of the Companys net income before income tax during the preceding year. This is determined and distributed among the directors in a manner the Board deems to be proper, subject to the approval of stockholders representing at least a majority of the outstanding capital stock at a regular or special meeting of the stockholders.
* Independent director ** Non-Board member *** Manila Water officer / senior manager
Risk Management
Manila Waters commitment to provide reliable highquality services to customers is challenged by certain risks that may affect the continuity and efficiency of business operations. With this in mind, we introduced the Enterprise Risk Management (ERM) Program in 2000 to identify the Companys risks and integrate them into our strategic, tactical and execution planning exercises. We believe that keeping our key risks in check allows us to consistently meet our corporate and sustainability commitments. At the same time, this allows us to continuously improve the scope and delivery of our services that include venturing into new businesses in line with providing water and wastewater solutions to communities outside our East Zone concession area. The risk management process is cascaded to the different corporate groups with the ultimate goal of implementing the process down to the shop-floor level. The management of top corporate risks is distributed and delegated among the groups to ensure accountability and holistic approach. Our key risks and their corresponding mitigating measures are identified and discussed in the succeeding table.
Protecting Stockholder Rights The Board ensures that shareholder rights are protected through the provisions stated under all applicable government laws and corporate By-laws, as well as in the Corporate Governance Manual. Likewise, shareholders, in accordance with the Corporation Code, are empowered to elect, remove and replace directors, as well as express their position on certain corporate acts through their voting right. All shareholders are given the opportunity to make inquiries and raise issues to the Companys Board and officers during annual stockholders meetings. At the same time, the Corporate Governance Manual stipulates instances that characterize conflict of interest. The concerned director is required to make full disclosure of the event and is disallowed to participate in the decision-making process. Employees are also covered by the same policy through the Code of Business Conduct and Ethics, which is regularly rolled out to increase awareness among employees. Evaluation and Remuneration The Board and the executive officers of the Company undergo a yearly evaluation of their performance in terms of governance practices. The Audit and Governance Committee, in coordination with the Corporate Governance Office, conducts the evaluation and discusses the results at a Board meeting.
Top Corporate Risks and Risk Management Measures TOP CORPORATE RISKS Incidents and Natural Events Risk Incidents and environmental disasters such as terrorism, earthquakes, floods and typhoons necessitate the development of comprehensive business continuity and disaster management plans to ensure the recovery and continuity of business operations. Regulatory Risk Adverse conditions brought about by regulatory, social and political forces within area of operations may negatively affect the Company and its ability to meet concession agreement and rate rebasing commitments. Water Supply Risk The development, security, reliability and quality of existing and new water sources and treatment and distribution facilities are critical to the provision of sustainable service to customers. Talent Management Risk The ability to meet manpower requirements of current and future businesses is critical in achieving business objectives. New Business Risk Expansion to new businesses within and beyond the East Zone increases exposure to various risks related to project development, start-up operations and integration. Capital Investment Risk The ability to meet service obligations and stay aligned with the regulatory disbursement planwhile ensuring profitability and return on investment largely depends on the planning, management and execution capabilities for bigger and more complex projects. Automate capital expenditure reporting and analysis Strengthen project evaluation process and review team Tap specialists and augment project management team Augment project management capability through training Capitalize partnership opportunities Use risk-based project selection criteria and due diligence process Monitor market developments for emerging technologies and competency requirements Conduct corporate manpower review Implement cross-posting and training programs Implement development programs for high potential talents Develop in-house training modules to tailor-fit curricula to the participants job profiles Fill target gaps through hiring Develop new and alternative water sources, such as the Laguna Lake, for the East Zone to ensure water supply security Continue and enhance implementation of watershed protection and rehabilitation programs Construct additional water treatment plants to cover demand projections Maintain non-revenue water at optimal level Implement an integrated asset management plan to ensure the quality and reliability of existing networks and facilities Apply risk-based approach in the adoption of new water technologies Undertake proactive policy research, development and advocacy Assess 2008 rate rebasing performance and plan for the 2013 rate rebasing exercise Enhance document management system Improve reporting procedures and guidelines Conduct review of critical project activities Ensure operability of standby water sources Implement Earthquake Contingency Plan, based on the 2004 Metro Manila Earthquake Impact Reduction Study Climate-proof critical facilities Test preparedness and response capability through random drills Strengthen functions of Business Continuity and Incident Management Response Teams RISK MANAGEMENT MEASURES
Help ing Bu il
ni es mu m Co
Pro tec
ng
Developing Employees
et
gH
ea
lt h
t ng E l ri b u a C o nt N a o n
Focus Areas
Commitments Help build communities by providing them with potable water, sewerage and/or sanitation services at affordable rates Develop and promote programs that nurture, protect and conserve natural resources Operate the business in a way that the health of our employees, service providers and the general public is safeguarded Develop self-sustainability of targeted communities by instituting capacity-building mechanisms and livelihood programs Assess and manage risks associated with operations by instituting and adopting mitigating measures Incorporate the principles of good corporate governance in all aspects of our business operations Strengthen and sustain our relations with the communities and the government through community development programs Ensure that the principles of sustainable development are well-communicated to all our stakeholders Make sure that the construction of new facilities and adoption of new technologies support the principles of sustainability Design and develop an environmental management system that will ensure the sustainability of our operations
Environmental
co o L o n o cal mi and es
in a rd g u S af Safe and
Developing Employees
Empowering Employees
In 2010, we focused our employee development programs toward equipping employees with leadership and functional skills that empower them to meet our growing business requirements. At the same time, we implemented new programs, as well as provided additional tools and facilities to ensure an environment that enables our people to effectively execute their functions. Human resource (HR) management in Manila Water is divided under the responsibilities of senior management officers for Talent Management and Leadership Development, HR Services and Labor Relations led by the Corporate Resources Group Director.
Company President and CEO Gerardo C. Ablaza, Jr. addresses the Manila Water workforce during an employees meeting.
Our People
Manila Water Workforce Employee Breakdown by Area
Main Office
5.3% 84
12.5% 225
*
77
1,583 87.5%
*Reputable manpower agencies are engaged by the Company for some core business functions. Assigned workers are supervised by the coordinators of their respective agencies.
7.1% 6.2%
95
6%
Note: Main office figures include employees based in the Companys facilities. Other employees are distributed across eight Business Areas (BAs) in the East Zone of Metro Manila.
Average Hours of Training per Employee by Category (Internal Trainings) EMPLOyEE CATEGORy Senior Managers Middle-Level Managers Rank-and-File TOTAL TRAINING HOURS / EMPLOyEE / yEAR 57.9 41.8 68.9 54.2
Developing Employees
Our investments in our people strengthen our Companys capability to deliver high-quality services to customers, as well as ensure the welfare of all stakeholders. Employees are continuously provided with opportunities to develop their leadership and technical skills such that they are able to effectively perform their duties. Remarkably, our approach to employee development has been instrumental in the transformation of former MWSS employees, still consisting majority of the workforce at 74 percent, to become the Companys changemakers.
Technical Schools Technical schools seek to boost employee skills for better organizational performance. The schools include the Project Delivery Management School, which equips project managers with decision-making and budget-monitoring techniques by means of an in-depth appreciation of project contracts. The Program Management School, on the other hand, trains program managers to be efficient in handling significant initiatives of the organization. In addition, the Business Zone Management and the Facilities Management schools enable employees to effectively manage BA territories and company facilities, respectively. Finance Academy for Managerial Excellence (FAME) FAME is a training program developed in partnership with the Ateneo de Manila University John Gokongwei School of Management and BayanTrade, Inc. It aims to enhance the technical competence of Corporate Finance and Governance Group employees in areas such as risk management and financial analysis. It produced its first batch of graduates in 2010.
Leadership Trainings
Cadetship Training Program (CTP) The CTP molds fresh graduates and young professionals to become the Companys future leaders. Cadets acquire skills and principles that are relevant to their day-to-day tasks through classroom-type lectures, exposure to different operating units and hands-on management of a BA territory or project via a six-month program. Two batches of cadets were added to Manila Waters pool of talents in 2010. Leadership Institute for Manila Water Employees (LIFE) Launched in 2010, LIFE is a two-year leadership program with a highly structured and customized curriculum intended for selected key talents in the organization. LIFE develops leaders by improving individual competencies through opportunities to learn innovative processes and best practices.
Code of Conduct
Code of Conduct workshops are administered to enhance employees familiarization with the provisions of the Code that uphold the Companys corporate values, particularly on integrity and respect for people.
Functional Schools
NRW Certification Program In line with Manila Waters accomplishments in NRW reduction, the NRW Certification Program was introduced in 2010 to institutionalize learnings acquired from years of practice and pass them on to new and emerging talents.
Manila Waters new Fitness Center promotes a healthy lifestyle among hardworking employees.
Because of this, we institutionalized OHS practices through our Companys Health and Safety Policy, as well as the CBA, which has stipulations on the provision of safe working conditions and safety gadgets to employees, among others. To ensure consistency in enforcement, recording and reporting of accidents, including near-miss incidents, were part of the 2010 Safety Solutions performance metrics under the Companys Total Management System (TMS). Twenty-five (25) percent of our employees participated in formal joint management-worker health and safety committees at the corporate and facility levels and took part in monthly safety inspections and audits. In 2010 alone, workshops in safety solutions totaled 6,025 man-hours.
42
Furthermore, we take care of the health of our employees and their families through the provision of services such as first aid, health consultation, and physical and laboratory exams via our fully-equipped and appropriately staffed Wellness Center. In 2010, the Center extended its services by holding doctors visits to BAs and conducting audiometry tests for employees exposed to noise. In addition, the new Fitness Center was opened to ensure greater well-being among employees. Five of our facilities have been OHSAS 18001-certified in 2010, demonstrating our conformity with stringent international OHS standards. Our initiatives resulted in significant improvements in OHS performance, yielding zero work-related fatalities, injuries and lost days in 2010.
Board of Directors
Senior Management
Middle-Level Management
Rank-and-File
3 4
Board of Directors Senior Management
Middle-Level Management
Rank-and-File
2.7%
Safeguarding Rights
1.0 :1.1
Male Female
Manila Water conscientiously observes labor laws and ethical practices as a way of respecting diversity and securing the rights of employees. Equal employment opportunities are provided for all, and only applicants of legal age are hired by our Company. Because of these measures, there has never been any incidence of discrimination and child labor in the Company. Similarly, Manila Water does not have any reported incidents or complaints on forced labor. Although operations require a 24/7 work schedule to ensure uninterrupted service to customers, work shifts are arranged in such a way that employees report for eight hours a day, five days a week and with two consecutive rest days. Any excess work rendered due to emergencies is paid with rates that are in accordance with the law. On regular occasions, however, our management provides at least two weeks notice for any significant changes in operational requirements. In addition, 174 security guards commissioned from a reputable agency are regularly trained on modules that include relevant human rights topics such as laws on arrests, searches and seizures.
18 | Manila Water Company, Inc.
Senior Management Middle-Level Management Rank-and-File
Employee Turnover
By Gender
By Age
Rewarding Performance
By Area
1 (1.6%) 6.4% 3%
As an employer that values the work of its people, we offer a competitive compensation package to employees, starting with entry-level wages that are above the governments minimum wage standards. This measure serves as a way of ensuring that our employees are capable of meeting their needs, as well as those of their families. Salary adjustments are based on employee performance and not on age, gender or any cultural factors. In 2010, 62 percent of employees underwent a formal performance appraisal while the rest, comprising of Union members, were not included in line with the provisions of the CBA.
The Company takes pride in its 2010 Huwarang Manggagawa awardees led by Grand Huwarang Manggagawa, Bert Ramirez.
2010 Sustainability Report | 19
As a way of recognizing high-performing talents and encouraging other employees to render outstanding performance, we hold the yearly Chairmans Circle (C2), Presidents Pride due to Performance (P3), and Huwarang Manggagawa or Model Employee Awards for senior managers, middle-level managers, and rank-and-file employees, respectively. A total of 156 employees from all employment categories were awarded by the Company during the year. Regular Employee Benefits
GOVERNMENT-MANDATED 1. Social Security System (SSS) advanced payment of sickness benefit, maternity benefit and loan, among others 2. PhilHealth health insurance 3. Pag-ibig housing and multi-purpose Loan COMPANy-INITIATED 1. Health insurance (HMO), including one free dependent 2. Wellness benefits, including medical and dental treatment 3. Life and accident insurance, including one dependent 4. Uniform 5. Encashment of sick leave and vacation leave credits 6. Car loan and multi-purpose loan for covered management-level employees 7. Emergency loans 8. Bereavement assistance
38%
1.4
1.0
Manila Water
Minumum Wage
Manila Water Chairman Fernando Zobel de Ayala and former President Rene D. Almendras (middle) lead the 2010 C2 awardees.
An employee conducts a storytelling activity as a way of encouraging young children to help protect the environment.
Employee Volunteerism
We develop employees in such a way that they espouse our social and environmental aspirations, being a company that values concern for others. Hence, we provide them with venues to make personal contributions to social development and environmental sustainability through volunteerism. Major volunteer events in 2010 include planting trees at the Marikina Watershed and participating in Ayalawide initiatives such as the Earth Day painting activity and Habitat for Humanity Build, as well as in the Department of Educations (DepEd) Brigada Eskwela, a yearly activity where partners clean up and repaint school facilities. Members of the Sagip Buhay or Save Lives volunteer group and other Manila Water employees participated in all these activities.
Labor-Management Relations
Successful CBAs between the Union and the management manifest healthy labor-management relations within the Company. Such CBAs are results of smooth and brief negotiations without any business disruptions. Remarkably, they contain terms and conditions that are within regulatory and business parameters. We take our labor-management relations to a higher level as we become partners not only in obtaining our targets as an organization, but also in creating sustainable livelihood opportunities to supplement the income of rank-and-file employees and their families. The Manila Water Employees Multi-Purpose Cooperative (MWEMPC) currently runs a grocery and a mobile carwash business that caters to company and employee vehicles. The MWEMPC has already generated a cumulative income of around P1.2 million since it started in 2007. In 2010, wives and children of our rank-and-file employees formed the first all-women enterprise under Manila Waters Kabuhayan Para Sa Barangay (KPSB) or Livelihood and Community Development Program. At the end of the year, they had an estimated earnings of more than P400,000 from job orders for corporate giveaways and other marketing collaterals.
Retirement Benefits
Employees automatically become entitled to retirement benefits upon regularization. Retiring employees receive benefits that include trainings in entrepreneurship and business planning, as well as financial benefits through the Company Retirement Plan. The financial assistance comes from the accrued contributions of Manila Water comprising 100 percent of the retirement and welfare fund. Some employees who pursue small businesses after retirement find opportunities to partner with Manila Water in providing business requirements such as leak repair, landscaping and consultancy. In some occasions, we offer job placement services for qualified dependents of retired employees. These initiatives help our employees undergo a smooth and easy transition to a non-working life as our commitment to empower our people goes beyond their careers at Manila Water.
2010 Sustainability Report | 21
Stakeholders Testimonials
Bert Ramirez Plant Operator, Wastewater Operations UP Sewage Treatment Plant, Manila Water Company 2010 Grand Huwarang Manggagawa Inventor of various tools and equipment to enhance plant operations I appreciate how Manila Water values its employees by allowing each of us to share what we know and innovate operational solutions that help our Company save and make work more efficient. At first, I thought I had no chance of obtaining the prestigious Grand Huwarang Manggagawa Award since I was not fortunate enough to have a college diploma. But thankfully, Manila Water looked beyond this and instead, recognized my abilities and dedication to work. Indeed, the Company gives me reasons to constantly perform my best. (Translated)
Buddy Gazo Retired Manila Water Employee Member Contractor, Water and Sewer Services Cooperative (WASSECO) Manila Water helped me prepare very well for my retirement. The Company trained me on how to properly manage my retirement benefits and start a business that will support my family. After my retirement in 2009, I joined WASSECO as a member contractor and was immediately tapped by the Company to perform service improvement projects. Now with more time for my family and a stable source of income even after retirement, I am grateful that I have learned much in terms of knowledge, skills and values as an employee of Manila Water.
Alicia Diamante President Group of Active Wives and Dependents of MWC Employees (GAWAD) Manila Waters Kabuhayan Para Sa Barangay livelihood program has empowered me to transform from a housewife to a woman who is capable of earning additional income for her family. Running a business that requires me to transact with an established company like Manila Water makes me more self-confident and responsible while I learn the ropes of operating an enterprise and managing people. I look forward to making our business grow by purchasing new equipment that will help us increase our product offerings. (Translated)
Ronnie Lim Chief Operating Officer Ho Chi Minh, Vietnam / New Business Development Manager, Manila Water Company CTP Batch 4, 2-time P3 Awardee I compare the Cadetship Training Program (CTP) to learning a sport or hobby for the first time: one needs a basic course that will teach the language, the key steps and the concepts of that sport. Without going through these basics, one does not stand a chance in competing in the sport. The CTP is where I learned the basic framework of the water business and developed the foundation that helped me take bigger roles in Manila Water. I believe that the Programs on-theground approach to learningparticularly on customer service, NRW management, project delivery and people management brings better results as theories are tested in actual conditions. My experiences in CTP serve as my platform as I take on the challenge of helping expand Manila Waters business beyond the Philippines.
Ricardo Lopez Carwash Employee Manila Water Employees Multi-Purpose Cooperative (MWEMPC) I would like to thank Manila Water for extending its livelihood program to the family members of its employees. For the past three years, the mobile carwash business of the Union Cooperative has been a good source of additional income for us. I am happy to be part of the Manila Water family. (Translated)
Linda Quines Area Business Manager, Rizal BA, Manila Water Company Consistent C2 Awardee In Manila Water, very clear goals are set for each department and individual such that everyone is aligned with the Companys agenda. This enables all business units and employees to strategize and focus on achieving our business goals, and social and environmental objectives. Correspondingly, regular tracking and evaluation of performance versus targets keeps us always on our toes and pushes us to go beyond our limits in delivering results, making us better persons in every milestone. My evolving roles, being always in the front line of the business, have helped me overcome my introvert personality. I feel responsible to make each change of role a success story and along the way, build my confidence. Professionally, cross-posting has helped me hone and enhance my leadership, communication and people management skills. It has broadened my horizon and deepened my understanding of the Companys operations and the industry in general.
Empowering Customers
Providing Clean and Safe Water for All Ensuring Health and Safety Caring for Customers Employing a Participatory Approach
189,681
575,112 71%
water availability
100%
Lingap Eskwela beneficiaries give Manila Water the thumbs up for clean and safe drinking water.
28 | Manila Water Company, Inc.
Stakeholders Testimonials
Edna Camarao Assistant Principal Bagong Ilog Elementary School The wash area and drinking facility installed by Manila Water through the Lingap Program have been very beneficial to our students. For one, our students are now able to save from drinking tap water instead of bottled water. In addition, we use the Lingap facilities to implement our schools programs on handwashing and toothbrushing. We believe that by promoting good health and proper hygiene, we lessen absenteeism among the children.
Miriam Navarro Head DSWD Sanctuary We are glad to have better access to safe drinking water because of Manila Waters Lingap Program. The water facilities installed by the Company are being used by our clients for their various needs. Lingap has also helped us obtain our municipal permit since wash areas are among the requirements. Thank you, Manila Water!
Carmen Gramonte TPSB Beneficiary Sitio Olalia, Brgy. Dela Paz, Antipolo City Manila Waters TPSB Program is a big help for me and my family. Before, I budget around P1,000 monthly for water since we consume around seven drums a week that cost P30 to 35 each. Now that I am connected to Manila Water, I only pay less than P200 for our monthly water bill. Thats big savings for us! Having piped access to potable water also gives me more time for my family because I no longer have to spend my Saturday mornings in lining up for water that may not even be safe for drinking. Now I spend all my mornings cooking breakfast for my family. (Translated)
Lcdr. Joel D. Tafalla PN Commanding Officer Post Engineering Unit Bonifacio Naval Station The water supply provided by Manila Water has always been enough for the consumption of the Bonifacio Naval Station and the offices and tenant units located in the Naval Station Jose Francisco. We are glad the 2010 El Nio did not have any effect to our organization. Clean and safe water was, in fact, always available for our daily needs as a result of the measures implemented by Manila Water.
2010 Sustainability Report | 29
Preserving Water Resources Striving for Operational Efficiency Taking Responsibility for By-Products Educating Stakeholders
6,600
7.5
Protected
2,600
50.5
Protected
* Size pertains to the dams maximum storage capacity. ** Management and operation of Angat Dam is under the National Power Corporation. *** Management of La Mesa Dam is under Bantay Kalikasan; data on area and biodiversity value is based from the Progress Report on the Biodiversity Resource Inventory of La Mesa Dam Watershed.
We also intensified efforts to reforest the watershed by cofunding the reforestation activities of Bantay Kalikasan, which has reforested 110 hectares with a total of 35,899 indigenous species of seedlings. In addition, we planted a total of 75,640 seedlings over 122 hectares through our Adopt a Watershed Program that has been carried out with 42 partner organizations since 2006. In 2010, 6,590 seedlings were planted over 13.5 hectares by our partners from the UP Mountaineers, the San Agustin Center of Studies, the Technological Institute of the Philippines, Miss Earth Philippines, Chemrez, The Philippine Star, PAUSE/ Punongbayan, Metro Rotary, Christian Bible, UP Crest, and Don Bosco Technical Institute. The Dumagats, a group of indigenous people living in the Ipo Watershed, help Manila Water sustain reforestation efforts by serving as the watersheds guardians. We empower them by providing educational activities and sustainable livelihood opportunities in partnership with the academe and some NGOs. Aside from maintaining reforested areas, the Dumagats prepare the planting sites and supply the seedlings for tree planting volunteers. Three Dumagats have been engaged by Manila Water as facility caretakers.
During the period, we also continued supporting Bantay Kalikasans Save the La Mesa Watershed Project and began soliciting proposals for a comprehensive La Mesa Watershed management plan as part of our participation in the technical working group of the La Mesa Watershed Management Council. Aside from implementing activities to maintain our primary water resources, we also took a key role in rehabilitating the Marikina Watershed by developing a comprehensive management plan and committing to reforest 500 hectares of the watershed with the help of Fostering Peoples Education, Empowerment and Enterprise (FPE3) and local community partners. In 2010, we reforested more than 30 hectares by planting 17,750 trees, with the remainder to be subsequently planted. Manila Water also actively participated in related undertakings led by the Philippine Disaster Recovery Foundation.
Groundwater Protection
As part of our Groundwater Protection Program, we continued our campaign to make customers aware of the need to keep groundwater resources clean, reliable and intact by avoiding overabstraction and illegal use of deepwells.
Angat Dam
Customers
Discharge to Rivers
Effluent Reuse
7,470 4,793
16 4 1279
1.6%
2009
2010
100%
Note: The decrease in water supply chemicals used can be attributed to our lower aluminum consumption as a result of the reduction in raw water turbidity during the El Nio.
Note: We increased abstraction from supplementary sources in 2010 to augment decreased water allocation from Angat Dam due to the El Nio.
In spite of Manila Waters continuous expansion, we remain committed to increase operational efficiency in terms of water, chemicals and energy use. This measure is in line with our Climate Change Policy, wherein we consider the operational and financial implications of climate change to our Company and our ability to deliver the service obligations defined in the concession agreement. With this, we also implement programs that help us manage our carbon emissions.
737,621 408,935
NRW Management
The El Nio served as our biggest environmental challenge in 2010. Hence, we intensified our NRW Management Program as part of our mitigating measures. Water losses further reduced from 15.8 percent in 2009 to 11 percent in 2010, which helped us provide uninterrupted water supply to our customers despite reduced water allocation. Similarly, the program allowed us to cater to new customers, which nearly doubled since the start of the concession.
2009
2010
Note: The increase in chemical consumption is due to the additional wastewater facilities and sewer connections. An additional chemical, polymer, is required for the treatment of biosolids in our FTI and San Mateo Septage Treatment Plants (SpTP), which both began full operations in 2010.
Machines and equipment are regularly inspected to ensure efficient and uninterrupted services.
Php 35.64M
energy savings
In addition to implementing energy efficiency initiatives that help reduce Scopes 1 and 2 greenhouse gas (GHG) emissions, we use chillers and air conditioning units that are energy efficient and ozone-friendly. This allows us to better manage our non-carbon emissions, as well as help counter global warming and its effects to the environment. Summary of Non-CO2 Air Emissions (in tonnes)
NON-C02 AIR EMISSIONS Carbon Monoxide (CO) Nitrogen Oxides (NOx) Hydro Carbons (HC) Particulate Matter TOTAL 2009 7.83 2.50 0.30 0.40 11.03 2010 8.14 2.57 0.33 0.40 11.44
2,006,591 L fuel
direct energy consumption
83,576,000 kWh
indirect energy consumption
Note: 1) The total non-CO2 air emissions of the Companys vehicles was calculated by multiplying the number of kilometers traveled by vehicles and the Philippine Clean Air Acts Emission Limits for Passenger Cars/ Light Duty Vehicle Type approval, which is equivalent to Euro 3. 2) NonCO2 emissions for 2009 were recomputed using the same factor.
* Scope 1 data in 2009 have been recomputed to include emissions from Company vehicles and supplemental power equipment. ** The increase in Scope 2 emissions can be attributed to the higher emission factor yielded by the Luzon grid mix and the increase in electricity consumption.
Sanitation On the other hand, septic tank desludging services are provided to residential customers who are not yet connected to our sewer networks through the Sanitasyon Para Sa Barangay or Sanitation for the Community Program. In 2010, Manila Water emptied a total of 56,466 septic tanks, which serviced a total of 242,026 households. This amount translates to 203,595 cu.m. of septage properly collected and treated by the Company.
Educating Stakeholders
Protecting the environment is a commitment we cannot fully realize without the support of our stakeholders. Thus, we find opportunities to share with them environmental issues and practices that are related to our business. The Lakbayan or Water Trail Program takes participants to a tour of our various facilities with the goal of imparting the importance of securing our water resources and of treating wastewater prior to disposal. The Lakbayan Water Education Center, a commitment included in the previous report, was established in 2010. The center, along with animated audiovisual presentations, enriches the whole learning experience of participants. To date, more than 18,000 participants from over 500 groups have attended the Lakbayan since 2006. Around 3,000 participants from 126 groups participated in the Lakbayan in 2010.
57.75
mld
230,753
cu.
wastewater effluent reused at UPAyala m. TechnoHub and within the facilities BOD removed
2,735
tons
3,000 126
participants groups
20,968
tons
biosolids produced
252
tons
sewerage and sanitation projects wastewater operations watershed management sludge and septage management (hauling) TOTAL
1,508
tons
Note: We computed for the weight of biosolids and grits and screenings, which are by-products from the primary treatment of wastewater, by multiplying the actual volume in cubic meters with the waste density based on literature, which are 1000 kg/m3 and 1,200 kg/m3, respectively.
Stakeholders Testimonials
Celina Marie E. Cruz Head, Environment Committee University of the Philippines Mountaineers (UPM) For the past 33 years, the UPM has been at the forefront of creating ways to heighten public awareness to the plight of the various ecosystems. We have been working closely with Manila Water for more than three years now. With this, we have learned that the Company places the needs of the community and addresses environmental concerns first and foremost. Their development approach effectively strives to include local communities in working toward solutions. By educating the community and building awareness for the environment, protection and restoration is taken into long term. Manila Water has been a reliable partner and a key proponent in helping UPM achieve its environmental advocacies. They never fail to give us their unwavering support and is always ready to provide us with assistance and guidance. The Company goes beyond their way to help their partners and stakeholdersnot all companies can say that. It is an honor and a great privilege to work with some of the most committed and driven people in the industry. We thank Manila Water for making us part of their mission to ensure sustainable water supply and an environment that will be preserved for the succeeding generations.
Manuel Cruz Ipo Watershed Caretaker Manila Water helps me support my family by engaging me as a facility caretaker at the Ipo Watershed. The Company also assists Dumagats in obtaining additional income for our families by providing livelihood programs such as maintaining a seedling nursery. Aside from this, women in our community earn from manufacturing and selling ginger ale and peanut butter. I am glad that Manila Waters strong partnership with our community helps protect our environment. (Translated) Teresa Aragota Forester Calawis Punlaang Bayan Our group supports Manila Waters undertaking at the Marikina Watershed. We conduct follow-up activities such as re-visiting sites that have been rehabilitated to ensure that planting activities are successful. Previously, members of our community are engaged with selling charcoal. Because of our joint tree nurturing project, residents now busy themselves with more sustainable and profitable activities like brushing, digging, sticking and hauling of seedlings. We also plant fruit-bearing trees such as lanzones, rambutan and mangosteen, as well as cash crops for sustainable livelihood.
2010 Sustainability Report | 37
Mark Ellie G. Ortinez 4th Year Civil Engineering Student Pamantasan ng Lungsod ng Maynila Prior to Lakbayan, what I learned in the classroom are purely theoretical. It is entirely different seeing the actual processes for water and wastewater treatment. Now that I know them, I aim to learn more about the environment. I am also going to start drinking tap water since it is safe to drink and more environment-friendly than bottled water.
The Contracts and Vendor Management Department under the Corporate Finance and Governance Group oversees the Companys supply chain management. On the other hand, the Sustainable Development Department under the Regulation and Corporate Development Group coordinates with different business units for the implementation of the Companys social programs. Connecting people to our pipelines is more than simply providing access to our services. For us, it means creating shared value and growing with our customers and the communities they are part of.
18 457 708
40 | Manila Water Company, Inc.
Children are able to save their allowance because of the clean and safe-to-drink water available through the Lingap Program.
Risk-Proofing Operations
We enhance sustainable development by making our services efficient and reliable since access to potable water translates to increased productivity. In spite of the water supply threats posed by the El Nio in 2010, our customers continued to enjoy 24/7 supply of potable water with adequate pressure as a result of our NRW savings and business continuity measures. Continuous access to water enabled residential customers and commercial establishments to carry out daily activities and transactions without any interruptions.
Recognizing our role in fostering growth in the communities we serve, we provide opportunities for SMEs and cooperatives to partner with us through the Vendor Management and KPSB programs. These programs help small entrepreneurs obtain access to financing and skills development trainings so that our growth as a company extends to our business partners and the bigger community.
50,000 8 P17M
(in million pesos)
jobs generated from investment program plan KPSB cooperatives job orders through KPSB
11,013 6,590
1,092 2,379 1,359 1,757 3
direct economic value generated economic value distributed employees (salaries and benefits) providers of capital (dividends and interest payments) government (taxes and licenses) materials, facility and service providers (operating costs*) community (donations*) economic value retained**
4,423
* Operating costs and donations do not include capital expenditures for service improvement projects. ** Economic value retained is not equal to net income.
Stakeholders Testimonials
Miguelito Salgado Founder / General Manager Lupang Arenda Muslim-Christian Development Cooperative (LAMCDC) LAMCDC is located in a small community where underprivileged Muslim and Christian families live. Some years ago, we did not have access to basic necessities such as water and electricity, and many of us did not have regular jobs and stable sources of income. These reasons prompted us to organize ourselves and pool our resources to form a cooperative. Our partnership with Manila Water began when they provided us access to potable water through the TPSB Program. Eventually, our cooperative received assistance from the Company through the KPSB Program. Since then, we have been supplying the Company with A-frames, meter protectors and services for Lingap projects. Thanks to KPSB, many of us have been encouraged to work and develop our skills. More importantly, Muslims and Christians in our community live harmoniously together because of a common purpose and a sustainable livelihood.
Diosdada and Abel Pangilinan Vice President and President ABDA Construction Inc. Best Safety Performer / Loyalty Awardee, Vendors Night We started our business in August 2002 with a capital of only P250,000. One of our first job orders was for a leak repair in the Cubao BA. We had only one truck, one compressor, one foreman and three laborers. We got our break when we were awarded our first major project with Manila Water. It was a pipe-laying activity that was part of the Companys NRW Reduction Program. Since then, our business grew from having merely seven employees in the beginning to becoming a business that supplies jobs to more than 300 employees. When before, we would only rent equipment to complete our projects; now we have 32 trucks, 3 loaders, 3 backhoes and 20 compressors with jackhammers. We are glad Manila Water taught us good values and strong customer orientation, which have been significant to our growth and development as an enterprise.
Jeff Gacula Operations Manager J.P. Gacula Construction QX Academy Topnotcher We became an accredited vendor of Manila Water in 2003. Back then, our projects were mostly for the Marikina Business Area (BA). Later on, we expanded our services to cater to the needs of two other BAs, particularly the Rizal and Pasig BAs, and moved on to deliver wastewater service improvement projects in the Taguig, Cubao and Balara BAs. In 2010, we were awarded our biggest sewer project so far. The QX Academy helped us organize our work processes and made us more effective in executing our sewer projects.
Engr. Lito Estorninos Engineering Officer Celebrity Sports Club Manila Waters services are vital to our day-to-day operations. The Companys services help us save on our electric consumption as we no longer have to use our booster pump due to the sufficient water supply and pressure we receive. In 2010, we had plans to reactivate our pump because of the threat of the El Nio on water availability. Thankfully, there was enough supply and pressure during that period. We did not have to use our booster pump anymore.
Eddie Go Falcon Metal Loyalty Awardee, Vendors Night Manila Water challenges its partners to innovate and improve locally-manufactured products. The trust it bestows on us inspires us to produce high quality products that are at par with international standards at reasonable cost.
Engaging Stakeholders
In order to be effective in attaining our sustainability objectives, we undertake various initiatives to address the issues of our stakeholders and engage them at various levels. During the year, the water supply threats associated with the El Nio posed serious concerns among our stakeholders. To address them, we launched a crisis communication plan that allowed key stakeholder groups to receive updates on the status of our water supply and the measures we implement to mitigate the droughts impact on our operations. Our partnerships with stakeholders complement our CSR initiatives and lead us to achieve our goals. Shareholders As a publicly listed company, we engage our shareholders by conducting annual stockholders meetings where our Board of Directors, led by the Chairman and President, can directly address the issues raised by our shareholders. During these meetings, we distribute our Annual Report. In addition, we make all relevant news and disclosures accessible to our shareholders by keeping the Investor Relations Section of the Manila Water website up-todate. We also hold investor briefings, roadshows and one-on-one meetings. Concerns may be directed to us through the contact details found in our reports and website. Employees As the most valuable of our resources, we employ various initiatives to empower and align our employees with our corporate goals. Under the Total Management Sytem (TMS), specific and measurable targets are monitored through regular management reviews (Key Result Area reviews, quarterback meetings, departmental meetings, etc.). In line with this, we have institutionalized an incentive/ rewards system. We also provide opportunities for professional development (e.g. functional trainings, leadership seminars, cross-posting, etc.). We release regular e-newsletters and quarterly magazines to keep our employees abreast of topics that include business updates, human resource matters, and occupational health and safety. We also hold regular All Managers and Partners meetings, respectively, for our management team and the Union. In 2010, we
launched Pipenet, the Manila Water intranet portal, for employees to conveniently access information and forms that help them carry out their tasks effectively. Vendors We influence our business partners to do responsible business and enable them to grow with us. Hence, we communicate our values and goals to our suppliers and contractors by organizing regular meetings, updating and cascading our Vendors Code of Conduct, holding trainings through the QX Academy, and rewarding vendors who have been consistent in complying with our policies and standards. (More discussion on this may be found in the Enhancing Sustainable Development Section.) Customers and Communities We value our customers and the communities they represent as all our sustainability efforts are intended to enhance the delivery of services that are vital for their daily lives. We take a proactive and on-the-ground approach to keep our customers informed, as well as empower them to share in our advocacies by educating them through our Lakbayan or Water Trail Program and public consultations, as well as through printing useful information tidbits in billing statements. (More discussion on this may be found in the Empowering Customers Section.) Regulatory Bodies, Government Agencies and LGUs We work with the government to attain social, environmental and economic development through public-private partnerships (PPP). We ensure that in meeting our service obligations, regulatory standards are also complied with. We provide timely reports to our regulators and to other concerned government agencies and LGUs. On some occasions, we are tapped to serve as resource persons in technical working group
Stakeholders tour the Balara Treatment Plant for better appreciation of the intricate processes involved in producing potable water.
discussions for policy-making and other undertakings related to our areas of expertise. In 2010, we participated in the MTSP-Global Environment Facility of the DENR, which seeks to address the missing policy instruments of the Clean Water Act. Business / Industry Groups We take the opportunity to learn and share our best practices, as well as identify and establish partnerships for sustainability within business and industry groups that include the Philippine Water Partnership, International Water Association, Management Association of the Philippines, Philippine Disaster Recovery Foundation, Philippine Business for the Environment, and various chambers of commerce and industry, among others. Non-Government Organizations (NGOs) As part of our corporate communications strategy, we constructively engage different types of NGOs by partnering with them for various social and environmental projects. We also engage hardline NGOs by conducting issue-based briefings and dialogues. International Agencies and Donor Organizations Since access to water, sanitation and sewerage are global issues that need urgent attention, we partner with international agencies and donor organizations to increase public access to our services. For instance, the World Banks GPOBA and MTSP have contributed to making water connection more affordable to marginalized households and expanding the scope of our wastewater services. Academe We provide learning opportunities for students and teachers in different educational levels by giving talks about our Companys initiatives, accommodating student researchers and providing
on-the-job trainings for college students through our Summer Linkage Program whenever possible. On the other hand, we tap the academe for support in creating training programs and in conducting baseline and impact studies for various undertakings. In addition, we lead and support programs such as Lingap Eskwela that help improve water access and hygiene in schools. Media We utilize the media to reach out and communicate our services to a broad audience, as well as to address issues that are of public interest. When needed, press briefings and conferences are held through our Corporate Communications Department.
Empowering People
We shall continue to foster the development of our employees through the provision of learning opportunities and the implementation of additional measures that support our OHS programs. We shall also find ways to consistently bring high-quality services to our customers and to effectively mitigate risks relative to the provision of our services.
* Revised from previous year to show responses to general customer service complaints. ** 2009 data are adjusted to audited figures. *** For Scopes 1 and 2 only; 2009 data is updated to include emissions from supplemental power equipment.
GRI Index
NO. INDICATOR PROFILE 1.Strategy and Analysis 1.1 1.2 Statement from the most senior decision-maker of the company Description of key impacts, risks and opportunities Message from the Chairman and CEO, pp. 2-5 Our Approach to Sustainability Risk Management, pp. 11-12 Front Cover Company Profile, p. 6 Company Profile, p. 6-7 Company Profile, p. 6 Company Profile, p. 7 Company Profile, p. 6 Company Profile, p. 7; Empowering Our Customers, p. 25 Company Profile, p. 6; Empowering Employees, p. 16; Enhancing Sustainable Development, p. 41 Company Profile, p. 6-7 Awards and Recognitions, pp. 8-9 3. Report Parameters Report Profile 3.1 3.2 3.3 3.4 Reporting period Date of the most recent previous report Reporting cycle Contact point for questions regarding the report or its contents Process for determining the report content Boundary of the report Limitations on the scope or boundary of the report Basis for reporting on joint ventures / subsidiaries Data measurement techniques and the bases of calculations Explanation of the effect of any re-statements of information provided in earlier reports and the reasons for such restatement Significant changes from previous reporting periods in the scope, boundary or measurement methods applied in the report Table identifying the location of the Standard Disclosures in the report Policy and current practice with regard to seeking external assurance for the report About this Report, p. 1 About this Report, p. 1 About this Report, p. 1 About this Report, p. 1 REFERENCE COMMENT
2. Organization Profile 2.1 2.2 2.3 2.4 2.5 2.6 2.7 Name of the organization Primary brands, products, and/or services Operational structure of the organization Location of organizations headquarters Number of countries where the organization operates Nature of ownership and legal form Markets served
2.8
2.9 2.10
Significant changes during the reporting period Awards received in the reporting period
Report Scope and Boundary 3.5 3.6 3.7 3.8 3.9 3.10 About this Report, p. 1 About this Report, p. 1 About this Report, p. 1 About this Report, p. 1 About this Report, p. 1; also described in certain sections Protecting the Environment, p. 35; Our Sustainability Report Card, p. 47 Protecting the Environment, p. 35; Our Sustainability Report Card, p. 47 GRI Index, pp. 48-54
3.11
INDICATOR
REFERENCE
COMMENT
4. Governance, Commitments, and Engagement Governance structure of the organization Our Approach to Sustainability Sustainable Governance, pp. 10-11 Our Approach to Sustainability Sustainable Governance, p. 10 Our Approach to Sustainability Sustainable Governance, p. 10-11 Our Approach to Sustainability Sustainable Governance, p. 11 Our Approach to Sustainability Sustainable Governance, p. 11 Our Approach to Sustainability Sustainable Governance, p. 11 Our Approach to Sustainability Sustainable Governance, p. 10-11 Our Approach to Sustainability, p. 13; Enhancing Sustainable Development, p. 40 Our Approach to Sustainability Sustainable Governance, p. 10 Our Approach to Sustainability Sustainable Governance, p. 11
4.2 4.3
Indication of whether Chairman of the Board is also an executive officer Independent and/or non-executive directors of the Board
4.4 4.5
Mechanisms for shareholders and employees to provide recommendations or direction to the Board Linkage between compensation for Board members, senior managers, and executives, and the organizations performance Processes in place for Board to ensure conflicts of interests are avoided Process for determining the qualifications and expertise of the members of the highest governance body for guiding the organizations strategy Mission, values, codes of conduct, and principles
4.6 4.7
4.8
4.9
Procedures for Board / top management identification and management of economic, environmental and social performance Process for evaluating the Boards own performance
4.10
Commitments to External Initiatives 4.11 4.12 Explanation of how the organization adopted the precautionary principle Externally developed economic, environmental and social charters, principles or other initiatives Our Approach to Sustainability Risk Management, p. 11-12 Empowering Employees, p. 18; Empowering Customers, p. 27; Protecting the Environment, p. 35 Engaging Stakeholders, p. 45
4.13
Membership in associations and/or national/international advocacy organizations List of stakeholder groups engaged by the organization Basis for identification and selection of stakeholders with whom to engage Approaches to stakeholder engagement, including frequency of engagement by type and stakeholder group Key topics and concerns that have been raised through stakeholder engagement, and responses. Disclosure on Management Approach for Economic Aspects Disclosure on Management Approach for Environmental Aspects
Stakeholder Engagement 4.14 4.15 4.16 4.17 Engaging Stakeholders, pp. 44-45 Engaging Stakeholders, pp. 44-45 Engaging Stakeholders, pp. 44-45 Engaging Stakeholders, pp. 44-45 Enhancing Sustainable Development, p. 39 Protecting the Environment, p. 31
Disclosure on Management Approach for Labor Practices and Empowering Employees, p. 14 Decent Work Aspects
NO. HR SO PR
INDICATOR Disclosure on Management Approach for Human Rights Aspects Disclosure on Management Approach for Society Aspects Disclosure on Management Approach for Product Responsibility Aspects
COMMENT
ECONOMIC PERFORMANCE INDICATORS ASPECT: Economic Performance EC1 EC2 Direct economic value generated and distributed Financial implications and other risks and opportunities for activities due to climate change Enhancing Sustainable Development, p. 41 Our Approach to Sustainability Risk Management, p. 12; Protecting the Environment, p. 34 Empowering Employees p. 21 Manila Water does not receive any financial assistance from the government. On the contrary, we are paying the government, through the MWSS, concession fees to service existing loans of MWSS. Empowering Employees, p. 20
EC3 EC4
Coverage of the organizations defined benefit plan obligations Significant financial assistance received from government
ASPECT: Market Presence EC5 EC6 EC7 Range of ratios of standard entry level wage compared to minimum wage at significant locations of operation
Policy, practices, and proportion of spending on locally-based Enhancing Sustainable suppliers Development, p. 40 Procedures for local hiring and proportion of senior management hired from local community at locations of significant operation Although not specifically stated in a formal policy, Manila Water shows a strong preference for hiring Filipino talents as they are more attuned to local conditions. More importantly, this practice helps spur the local economy. Enhancing Sustainable Development, p. 41 Enhancing Sustainable Development, p. 41
ASPECT: Indirect Economic Impacts EC8 Development and impact of infrastructure investments and services provided primarily for public benefit through commercial, in-kind, or pro bono engagement Understanding and describing significant indirect economic impacts, including the extent of impacts
EC9
ENVIRONMENTAL PERFORMANCE INDICATORS ASPECT: Materials EN1 EN2 Materials used by weight or volume Percentage of materials used that are recycled input materials Direct energy consumption by primary energy source Indirect energy consumption by primary energy source Energy saved due to conservation and efficiency improvements Protecting the Environment, p. 34 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 35
NO. EN6
INDICATOR Initiatives to provide energy-efficient or renewable energy based products and services, and reductions in energy requirements as a result of these initiatives Initiatives to reduce indirect energy consumption and reductions achieved Total water withdrawal by source Water sources significantly affected by withdrawal Percentage and total volume of water recycled and reused
REFERENCE Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 34 Protecting the Environment, p. 32 Protecting the Environment, p. 35 Protecting the Environment, p. 32 Protecting the Environment, p. 32 Protecting the Environment, p. 32 Protecting the Environment, p. 32 Protecting the Environment, p. 32 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 35 Protecting the Environment, p. 15 Protecting the Environment, p. 36
COMMENT
EN7
ASPECT: Biodiversity EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Habitats protected or restored Strategies, current actions, and future plans for managing impacts on biodiversity Number of IUCN Red List species and national conservation list species with habitats in areas affected by operations Total direct and indirect greenhouse gas emissions by weight Other relevant indirect greenhouse gas emissions by weight Initiatives to reduce greenhouse gas emissions and reductions achieved Emissions of ozone-depleting substances by weight NO, SO, and other significant air emissions by type and weight Total water discharge by quality and destination Total weight of waste by type and disposal method Total number and volume of significant spills Weight of transported, imported, exported, or treated waste deemed hazardous, and percentage of transported waste shipped internationally Identity, size, protected status, and biodiversity value of water bodies and related habitats significantly affected by the reporting organizations discharges of water and runoff Protecting the Environment, p. 36 Protecting the Environment, p. 32
EN12
ASPECT: Emissions, Effluents, and Waste EN16 EN17 EN18 EN19 EN20 EN21 EN22 EN23 EN24
Manila Water has never had any chemical, oil or fuel spills.
EN25
ASPECT: Products and Services EN26 EN27 Initiatives to mitigate environmental impacts of products and Protecting the Environment, pp. services, and extent of impact mitigation 35-36 Percentage of products sold and their packaging materials that are reclaimed by category Protecting the Environment, p. 36
NO. EN28
INDICATOR ASPECT: Compliance Monetary value of significant fines and total number of nonmonetary sanctions for non-compliance with environmental laws and regulations Significant environmental impacts of transporting products and other goods and materials used for the organizations operations, and transporting members of the workforce Total environmental protection expenditures and investments by type
COMMENT
SOCIAL PERFORMANCE INDICATORS LABOR PRACTICES AND DECENT WORK ASPECT: Employment LA1 LA2 LA3 Total workforce by employment type, employment contract, and region Total number and rate of employee turnover by age group, gender, and region Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Percentage of employees covered by collective bargaining agreements Minimum notice period(s) regarding significant operational changes, including whether it is specified in collective agreements Percentage of total workforce represented in formal joint management-worker health and safety committees that help monitor and advise on occupational health and safety programs Rates of injury, occupational diseases, lost days, and absenteeism, and total no. of work-related fatalities by region Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases Health and safety topics covered in formal agreements with trade unions Average hours of training per year per employee by employee category Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Percentage of employees receiving regular performance and career development reviews Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership, and other indicators of biodiversity Ratio of basic salary of men to women by employee category Empowering Employees, p. 16 Empowering Employees, p. 19 Empowering Employees, p. 20
LA7
Empowering Employees, p. 18
LA8
Empowering Employees, p. 18
LA9
Empowering Employees, p. 18
ASPECT: Training and Education LA10 LA11 Empowering Employees, p. 16 Empowering Employees, p. 21
LA12
Empowering Employees, p. 19
LA14
Empowering Employees, p. 18
NO.
REFERENCE
COMMENT
ASPECT: Investment and Procurement Practices HR1 Percentage and total no. of significant investment agreements that include HR clauses or that have undergone HR screening Percentage of significant suppliers and contractors that have undergone screening on HR and actions taken The report covers only Manila Waters operations in the East Zone of Metro Manila and does not include its international businesses; thus, this indicator is irrelevant. Manila Waters compliance with human rights and labor laws and regulations are discussed in this report. Enhancing Sustainable Development, p. 40
HR2
HR3
Total hours of employee training on policies and procedures concerning aspects of HR that are relevant to operations, including the percentage of employees trained Total no. of incidents of discrimination and actions taken Operations identified in which the right to exercise freedom of association or collective bargaining may be at significant risk, and actions taken to support these rights Operations identified as having significant risk for incidents of child labor, and measures taken to contribute to the elimination of child labor Operations identified as having significant risk for incidents of forced or compulsory labor, and measures taken to contribute to the elimination of forced or compulsory labor Percentage of security personnel trained in the companys policies or procedures concerning aspects of HR that are relevant to operations Total no. of incidents of violations involving rights of indigenous people and actions taken SOCIETy
ASPECT: Non-Discrimination HR4 HR5 Empowering Employees, p. 18 Empowering Employees, p. 21 ASPECT: Freedom of Association and Collective Bargaining
ASPECT: Indigenous Rights HR9 Manila Water has never had any incidents involving the rights of indigenous people.
ASPECT: Community SO1 Nature, scope, and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting Percentage and total number of business units analyzed for risks related to corruption Percentage of employees trained in companys anticorruption policies and procedures Actions taken in response to incidents of corruption Empowering Customers, pp. 27-28
ASPECT: Corruption SO2 SO3 SO4 Enhancing Sustainable Development, p. 40 Enhancing Sustainable Development, p. 40 Enhancing Sustainable Development, p. 40 Engaging Stakeholders, p. 45 Enhancing Sustainable Development, p. 40 Enhancing Sustainable Development, p. 40
2010 Sustainability Report | 53
ASPECT: Public Policy SO5 SO6 Public policy positions and participation in public policy development and lobbying Total value of financial and in-kind contributions to political parties, politicians and related institutions Total no of legal actions for anti-competitive behavior, antitrust and monopoly
NO. SO8
INDICATOR ASPECT: Compliance Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations PRODUCT RESPONSIBILITy
REFERENCE
COMMENT Manila Water had no fines or sanctions for non-compliance with laws and regulations in 2010.
ASPECT: Customer Health and Safety PR1 Life cycle stages in which health and safety impacts of products and services are assessed for improvement, and percentage of significant products and services categories subject to such procedures Total number of incidents of non-compliance with regulations and voluntary codes concerning the health and safety impacts of products and services during their life cycle, by type of outcomes Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information labeling, by type of outcomes Empowering Our Customers, p. 27
PR2
ASPECT: Product and Service Labeling PR3 Empowering Customers, p. 27 Manila Water does no have any non-compliance with regulations and voluntary codes concerning product and service information labeling. Empowering Customers, p. 28
PR4
PR5
Practices related to customer satisfaction, including results of surveys measuring customer satisfaction Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion and sponsorship Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes
ASPECT: Marketing Communications PR6 Protecting the Environment, p. 36 Manila Water does not have any non-compliance with regulations and voluntary codes concerning marketing communications.
PR7
ASPECT: Customer Privacy PR8 Total number of substantiated complaints regarding breaches Empowering Customers, p. 28 of customer privacy and losses of customer data ASPECT: Compliance P9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services Empowering Customers, p. 28 None.
We include this GRI Application Level table in our report to support our self-declaration of this report at Application Level A.
Report Application Level
G3 Profile Disclosures
Report on all criteria listed for Level C plus: 1.2 3.9, 3.13 4.5-4.13, 4.16-4.17
Not Required
Report on a mimimum of 10 Performance Indicators, including at least one from each: Economic, Social, and Environmental
Report on a minimum of 20 Performance Indicators, at least one from each: Economic, Environmental, Human Rights, Labor, Social, Product Responsibility.
Report on each core G3 and Sector Supplement Indicator with due regard to the Materiality Principle by either: (a) reporting on the Indicator or (b) explaining the reason for the omission.
Stakeholders Commentaries
Virgilio P. Fulgencio Executive Director Department of Trade and Industry Center for Industrial Competitiveness The Manila Water Sustainability Report presents a very clear blueprint of the future direction of competitive companies. Its strict compliance to the long list of GRI indicators presents a very solid proof of the sincerity of the company to move beyond unilateral corporate success and to directly connect corporate success with social progress. In my opinion, Manila Water is a prime example of a company that practices the principle of shared value which is based on the principle that societal needs, not just conventional economic needs define markets. So this involves creating economic value that also creates value for society by addressing its needs and challenges. The long list of projects and activities that involve and impact on the community is a solid proof of this achievement. I can attest to this not just from the point of view of a key stakeholder, but from the point of view of a very satisfied Manila Water customer. What Manila Water has done is by itself a major transformation in business thinking. I am also very proud of the fact that a Filipino corporation has proven once again that it can be the best in its class. As I see it, Manila Water has in fact institutionalized its sustainable business practices way ahead of many companies, even those found in so-called economically advanced countries. It is my hope that other local companies will adopt the Manila Water business model so that eventually, we can have a critical mass of business entities in the country with the same holistic approach to sustainability. This perspective of creating shared value is an innovative way of creating economic success and a more competitive Philippines in the long run. But what really makes this approach unique is that in doing so, nobody will be left behind. Once again, my congratulations to Manila Water for a job well done!
Ms. Constancia Q. Lichauco Chairman Brgy. Bel-air, Makati City Sustainable development is an elusive term, which many people mistakenly consider as merely protecting the environment or attaining economic development. Sustainable development is more than that. It is about maintaining and improving the quality of life without compromising the ability of future generations to meet their needs. And Manila Water has shown this beyond measure. Its partnership with MWSS has been very beneficial and efficient because the consumers get what they deserve. Manila Water does not limit itself on one aspect of development; rather, it integrates the socio-cultural, environmental and economic aspects of sustainable development to its objectives. During the El Nio last year, Brgy. Bel-air was continuously provided with water. There could have been cases of low pressure but this was well-handled and communicated by our partners in Manila Water so as to avoid inconvenience to our residents. Their emphasis on excellent customer service is evident with how they managed the situation. I believe we are enjoying world-class services from Manila Water. I hope that Manila Water will continue to exceed our expectations and compete in the international arena given that it is one of the best utility companies today. I salute Manila Waters excellent corporate philosophy, culture and ways of conducting its businessa business with a heart.
Howard Belton President Philippine Business for the Environment Philippine Business for the Environment aims to develop and spread environmental best practice. Because environmental degradation is accelerating, it is vital that business plays a leading role in finding solutions. We base our approach on two principles: Take responsibility its too important to leave to others; Co-operate the environmental issues are too big for fragmented efforts. Both these principles are well-illustrated in the Sustainability Report. The efforts of Manila Water to expand its coverage, and especially to guarantee clean water to urban poor areas, serve as an excellent example of taking responsibility. Taking responsibility is also very much present in the long-term plans of the Company for wastewater treatment and watershed protection. Co-operation is at the heart of the development of long term plans for the key watersheds. It is admirable that Manila Water is working with local and national governments, citizens, scientists and NGOs in the development of effective plans. These are of vital importance to the well-being of the environment and of the millions of people who depend on water from these watersheds. PBE is proud to be one of the partners of Manila Water in its efforts.
Edgardo C. Amistad Chairman League of Corporate Foundations Taking up the business of providing one of the most basic necessities for human survival surely stems from courage to accept the immense responsibility of ensuring public welfare. To bring it beyond profit and loss statements can only mean a selflessness no single business objective can capture. Manila Water benefits from its commitment to bring out the best in its operations, employees, and communities, as exemplified by its focus on investing in environmentfriendly operations, growing a competent pool of human resources, and maintaining highlevels of safety for its product and client communities. One can glean from its sustainability report the company's diligence and confidence, having set itself against the stringent guidelines of the GRI. While the company has certainly risen to the scrutiny of a public which has questioned its motives for profiting from what essentially is a free resource, it is dared to sustain its strategic integration of environmental protection and social participation to its practices. Problems will continue to rise and ebb, brought by forces no human structure can completely muster, and we challenge the company to meet these head on. As an advocate for strategic Corporate Social Responsibility, the League of Corporate Foundations congratulates the Manila Water Company's continuing dedication to serve the Filipino people.
Rosenni A. Basilio Department Head, Financial Planning, Systems and Control Manila Water Company, Inc. I am always proud and happy to be part of Manila Water, a company that has consistently demonstrated its serious commitment to protect the environment and create value for its customers, employees and other stakeholders. The Companys sustainable development programs provide me, as an individual, the opportunity to help improve peoples lives especially the marginalized, and do something for the environment. I am truly lucky to be part of this organization whose vision aligns with my personal advocacies. This years report is again a testimony of the Companys accomplishments and best practices in the field of sustainable development. I hope these will also inspire other organizations to implement their own social and environmental development initiatives.
56 | Manila Water Company, Inc.
The Manila Water 2010 Sustainability Report cover is printed on FSC-certified Mohawk Options, which is made with 100 percent post-consumer waste. One hundred (100) percent of the electricity used to manufacture the paper is offset with Renewable Energy Certificates (RECs) from nonpolluting wind power projects. The inside pages of this report are printed on 9 lives offset 80 gsm 100 percent recycled, a unique uncoated paper that reduces carbon footprint. Photography: Oliver D. Marqueses Thom Ryan Q. Ortega Dexter Quibuyen Concept, Content Design and Layout: K2 Interactive (Asia) Inc. Print Production: Primex Printers Inc.
MANILA WATER COMPANY, INC. MWSS administration building 489 Katipunan road, balara Quezon city 1105, philippines www.manilawater.com