2011 Sustainability Report - Manila Water Company, Inc.
Transcription
2011 Sustainability Report - Manila Water Company, Inc.
our quest for growth goes beyond purely financial returns and translates to significant benefits for both our present and future customers. 2011 Sustainability Report Sustainable Growth 1 What’s Inside 3 4 6 8 16 18 24 38 50 64 70 71 72 84 About this Report Message from the Chairman Message from the President Company Profile Sustainability Model Partners in Sustainable Growth Employees as Catalysts to Sustainable Growth Clean Water for Healthy Communities Commitment to Environmental Stewardship Responsible Business Practices that Drive Economic Growth Further Growth Ahead Sustainability Performance Highlights GRI and ISO 26000 Index Stakeholders’ Commentaries About this Report Manila Water is honored to share with you its 2011 freedom of association and collective Sustainability Report, the most groundbreaking bargaining, child labor, forced and compulsory Philippine publication of its nature to date. The labor, security practices, indigenous rights, release of this Report marks another milestone assessment, and remediation; in Manila Water’s 15-year history as it proudly • Labor practices, which talk about employment, becomes the first company in the country to publish labor and management relations, occupational a report that complies with two internationally- health and safety, training and education, and recognized standards. diversity and equal opportunity; Following the overall theme, Sustainable Growth, • Environment, which focuses on materials, the Report features Manila Water’s growth story energy, water, biodiversity, emission, effluents and sustainability performance for the past 15 and waste, products & services, compliance, years and highlights the stories of its stakeholders and transport; whose lives and businesses have been positively affected by the Company. Whereas the previous eight annual sustainability • Economic, which is specific to economic performance, market presence, and indirect economic impacts; reports were in accordance with the Global • Product responsibility, discussing customer Reporting Initiative (GRI) G3 Guidelines, this year’s health and safety, product and service labeling, offering closely adheres to the GRI’s updated G3.1 marketing communications, customer privacy, standards as well as the ISO 26000 guidance on social responsibility. and compliance; and • S o c i e t y , w h i c h c e n t e r s o n c o m m u n i t y , The GRI G3.1 standards on sustainability reporting corruption, public policy and anti-competitive cover the same set of issues on economic, behavior. product responsibility, society, human rights, Aligned with the guidance of ISO 26000, the environmental, and labor practices and decent Company’s 2011 Sustainability Report is largely work, but include five additional indicators and influenced by its stakeholders and the issues that improved content and clarifications on some of are important to them. Manila Water considered the performance indicators. Manila Water will their inputs in defining the materiality, scope and again self-declare its 2011 Sustainability Report as boundary of the Report. Level A application of these standards, but will use Figures and information contained in this Report stakeholder testimonials and commentaries from pertain only to the Company’s Metro Manila East a panel of sustainability experts to validate the Zone operations and do not include its subsidiaries, Report’s content. Laguna Water Company, Boracay Island Water The Report will also be guided by the ISO 26000 Company, Clark Water Corporation, Manila Water standards, which are governed by two fundamental Total and International Solutions, and the Manila principles, namely, recognizing social responsibility Water Foundation. and stakeholder identification and engagement. Unless otherwise indicated, all data in this report Similar to the GRI performance indicators, the ISO cover the period from January to December 2011, 26000 considers the following as its core subjects and all financial information have been verified by which companies must take into account for their the Company’s external auditor. responsible business practices: • Organizational governance, which highlights For further information, please contact: the need for the leadership team of an Carla May Beriña-Kim organization to be accountable, transparent Head, Sustainable Development Department and responsible as it makes crucial decisions E-mail: [email protected] for the business as well as its stakeholders; [email protected] • Human rights, pertaining to investment and procurement practices, non-discrimination, Telephone: (632) 917-5900 loc. 1562 / 1565 Fax: (632) 981-8121 3 Seven years ago, Manila Water made public its commitment to sustainability and corporate social responsibility (CSR) by publishing the first ever Sustainability Report in the Philippines. This report complied with the highest reporting standards under the Global Reporting Initiative (GRI). This measured our company’s performance beyond purely financial metrics by taking into account our social, environmental and economic contributions and impact. We take pride in this pioneering effort. This reporting practice was an important step in starting our sustainability journey as it provided a baseline of where we are and what we want to achieve moving forward. The years that followed after this first report were focused on implementing our sustainability plans and ensuring that these were responsive to both our business needs and the demands and expectations of our stakeholders. This sustainability agenda focused on five key areas: 1. Helping build communities 2. Safeguarding health 3. Protecting the environment 4. Contributing to the local and national economy, and 5. Developing our employees. We also looked for opportunities to align our initiatives sustainability with focus the areas Ayala in Education, Environment and Entrepreneurship. 4 manila water 2011 sustainability report Group’s Message from the Chairman This year we challenged ourselves to take our sustainability reporting practice a step higher by integrating the ISO 26000 guidance on social responsibility with the GRI G3.1 standards on sustainability reporting. In 2010 Manila Water registered another business partners because our growth is milestone by becoming the first Philippine our stakeholders’ growth and our success is company to reach Level A compliance equally their success. Because of this, we are with the GRI G3 standards. This makes increasingly driven to adopt a triple bottom the company one among only a handful line approach in our business operations and of water companies around the world to through our strategic CSR programs. Across have attained this reporting status. More all our efforts we also make sure that we importantly, our company reaffirmed its follow not only local and national laws and commitment in this report to provide water regulations, but also international policies and wastewater service in a way that sustains and declarations, particularly on important future generations. issues like human rights, labor and good This year we challenged ourselves to take governance practices. our a We hope we can count on you, our valued step higher by integrating the ISO 26000 stakeholders and partners, to continue on this guidance on social responsibility with the GRI journey with us and to remain committed to G3.1 standards on sustainability reporting. our sustainability objectives as we aim to be Upholding the highest standards of the ISO more competitive in a challenging business 26000 on organizational governance, human environment. It is our hope that our business rights, labor practices, environment, fair will ultimately benefit the communities that operating practices, consumer issues, and we serve and the environment that provides community involvement and development our resources. demonstrates the alignment of our social We thank our customers, our partners, responsibility objectives with Manila Water’s our shareholders, and most importantly, business model. This level of compliance our employees for making our sustainable is, once again, a first among Philippine growth story possible. sustainability reporting practice companies. Our ultimate objective in adhering to the highest reporting practices and standards is to ensure that our quest for growth goes beyond purely financial returns and translates to significant benefits for both our present and future customers. It should also positively impact our employees and fernando zobel de ayala Chairman 5 Message from the President Our business model has matured to a level that aligns business viability with creating a positive impact in the communities we serve and for the environmental resources we utilize. 6 2012 marks Manila Water’s 15 years of service productive activity. Moreover, families in to the people of Metro Manila’s East Zone. these communities saved 85-90% of what Looking back on our organization’s history, they used to pay for vended water. Most we see a Manila Water that has risen above importantly, over-all health and sanitation the travails of the Asian Financial Crisis, that significantly improved. has weathered a long episode of El Niño, In the same manner, we are delighted about and that has managed widespread network the success stories of our contractors, service operational challenges to eventually emerge providers and suppliers whose businesses as among the world’s best water operators, flourished with the Company’s operational with a solid track record of financial stability expansion. Most of them started as small, and operating efficiency. We witnessed mom-and-pop enterprises with only a few our Company’s transformation from a tall workers. Today, they are well-established and hierarchical organization to a flat and and competitive vendors, many of which seamless structure with competent and have risen to become Triple A contractors. empowered people. Most importantly, our Moreover, they have become an extension business model has matured to a level that of the Company’s face and a reflection of aligns business viability with creating a our positive impact in the communities we serve principles. The same story holds true for the and for the environmental resources we eight community-based cooperatives that utilize. are part of the ‘Kabuhayan Para Sa Barangay’ Manila Water is truly blessed to have had (KPSB) program, which are included in our the opportunity to create a significant supply difference in the lives of the people we serve, grown the startup capital they received from especially those belonging to marginalized Manila Water into full-blown and multiple communities. By fulfilling their basic human businesses that enable them to serve other right to water through the ‘Tubig Para Sa companies as well. Barangay’ (TPSB) and ‘Lingap’ programs, low- The profound changes and sustained growth income communities and public institutions experienced by Manila Water in the last 15 now have reliable access to affordable, years would not have been possible without potable water. This is in stark contrast to the the dedication, commitment and excellence conditions they had to endure before. People of our people. Our mantra, ‘One Company, no longer have to line up for hours and pay One Team’ accurately describes who we are extremely high rates for vended water. Safe as an organization. We intend to keep this in drinking water became accessible from mind as we pursue our mission of improving their taps any time of the day. The precious lives and contributing to nation-building. time they saved became available for more On our 15th year, we deem it appropriate manila water 2011 sustainability report corporate chain. values These and sustainability communities have to release a groundbreaking report that captures our sustainable growth story, and which shares heartwarming stories from our stakeholders and partners. The 2011 Manila Water Sustainability Report is truly a class of its own as it is the first-ever publication by a Philippine company to adhere to both the GRI standards on sustainability reporting and the ISO 26000 guidance on social responsibility. It not only speaks about our accomplishments with respect to the triple bottom line, but our commitment to corporate social responsibility and sustainability. This 2011 Sustainability Report is likewise a celebration of our growth and partnership with you. Endeavoring to make this report responsive and relevant, we have taken note of stakeholder feedback from the previous years and have put great focus on tackling issues that are most important to you. On behalf of the men and women of Manila Water, please accept my heartfelt thanks for 15 years of strong partnership. As we move towards more fruitful years of service, we remain mindful of our commitment to secure your future today. gerardo c. ablaza, jr. President & CEO 7 Company Profile A Manila Water employee addresses a customer’s water concern. Manila Water is a privately-owned and of 6.1 million people from 23 cities and publicly-listed company engaged by the municipalities in its concession area. Metropolitan Waterworks and Sewerage Despite being the sole provider of water System (MWSS) as its concessionaire to and wastewater services in Metro Manila’s improve the water supply and wastewater East Zone, Manila Water’s business practices infrastructure in the East Zone concession strictly adhere to international standards on area of Metro Manila and the adjacent anti-competitive province of Rizal. As such, in 2011 no administrative or judicial The Company focuses on water supply sanctions were levied against the Company treatment and distribution, wastewater (i.e. for failure to comply with national laws or sewerage and sanitation), and customer regulations. service. Its customer base is composed 8 manila water 2011 sustainability report and anti-trust behavior. Shareholder Base Ayala Group 43.2% public 45.5% Customer Base commercial 4.87% 0.32% 4.23% industrial semi-business Mitsubishi 7% 4.3% IFC domestic 90.56% Governance Structure stockholders who are eligible to vote at the Annual Stockholders’ Meeting. Board of Directors Moreover, the Company separates the roles Manila Water’s Board of Directors is and responsibilities of the Chairman, Mr. composed of 11 members, including 2 Fernando Zobel de Ayala, and the President independent directors to uphold the and Chief Executive Officer (CEO), Mr. principles of fairness, transparency and Gerardo C. Ablaza, Jr. to ensure the balance accountability in the Board’s decision- of power and allow independent and maki ng p r o c es s . T he y are e l e ct e d b y impartial decisions. company profile 9 Organizational Setup Office of the President Corporate Strategy and Development Group Corporate Finance and Governance Group Corporate Strategic Affairs Group Operations Group Strategic Asset Management Corporate Human Resources Group Project Delivery Group East Zone Business Operations Balara Cubao business areas Marikina (BAs) Makati Pasig San Juan Mandaluyong Taguig Rizal 10 manila water 2011 sustainability report Board of Directors Position Name Gender Nationality Age Chairman Fernando Zobel de Ayala Male Filipino 52 Members Jaime Augusto Zobel de Ayala Male Filipino 53 Gerardo C. Ablaza, Jr. Male Filipino 58 Antonino T. Aquino Male Filipino 63 Delfin L. Lazaro Male Filipino 65 John Eric T. Francia Male Filipino 40 Simon Gardiner Male British 44 Ricardo Nicanor N. Jacinto Male Filipino 51 Keiichi Asai Male Japanese 57 Jose L. Cuisia, Jr.* Male Filipino 68 Oscar S. Reyes* Male Filipino 65 From left to right: Jose L. Cuisia, Jr., Ricardo Nicanor N. Jacinto, Simon Gardiner, Keiichi Asai, John Eric T. Francia, Delfin L. Lazaro, Antonino T. Aquino, Fernando Zobel de Ayala, Jaime Augusto Zobel de Ayala, Oscar S. Reyes, Gerardo C. Ablaza, Jr., Solomon M. Hermosura * Independent Directors Executive Committee Chairman Fernando Zobel de Ayala Vice-Chairman Gerardo C. Ablaza, Jr. Members Audit and Governance Committee Chairman Oscar S. Reyes Members Ricardo Nicanor N. Jacinto Antonino T. Aquino Jose L. Cuisia, Jr. John Eric T. Francia Delfin C. Gonzalez, Jr. Ricardo Nicanor N. Jacinto The committee serves as the Board’s check The committee acts by majority vote of all and balance mechanism and is expected its members on specific matters within the to bring positive results in supervising and competence of the Board as may, from time supporting the Company’s management. It to time, be delegated to it in accordance with is responsible for ensuring the development the Company’s By-Laws, except with respect of, compliance with, and periodic review of to certain matters specified in the By-Laws corporate governance policies and financial and Corporate Governance Manual, and the reporting law. Company. The committee’s role also includes policies and practices of the risk management functions. company profile 11 Nominations Committee Chairman Jose L. Cuisia, Jr. Members Jaime Augusto Zobel de Ayala John Eric T. Francia Oscar S. Reyes 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. An independent director heads the committee Manila Water’s Management Committee (ManCom) members (from left to right), Geodino V. Carpio (Operations Group Director), Gerardo C. Ablaza, Jr. (President and CEO), Virgilio C. Rivera, Jr. (Corporate Strategy and Development Group Director), Ferdinand M. Dela Cruz (East Zone Business Operations and Corporate Strategic Affairs Group Director), Luis Juan B. Oreta (Chief Finance Officer) and Ruel T. Maranan (Corporate Human Resources Group Director) ensure that strategic directions from the Company’s Board of Directors are reflected in its day-to-day operations. and one of its three members is likewise an independent director. Remuneration Committee Chairman Oscar S. Reyes Members Gerardo C. Ablaza, Jr. Fernando Zobel de Ayala Jose L. Cuisia, Jr. The committee is given the power and Manila Water has a Corporate Governance Manual which institutionalizes the best governance practices used to guide the day-to-day business of the Company. duty to determine and approve all matters relating to remuneration and benefits of the Company’s 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. Proxy Validation Committee Chairperson; Head, Internal Audit Department Ma. Lourdes P. Miranda Atty. Jhoel P. Raquedan Members Compliance Officer Representative of External Auditor Luis Juan B. Oreta The committee is empowered to pass on the validity of proxies. 12 manila water 2011 sustainability report Board Remuneration Board Evaluation Compensation of the Board of Directors and The Company also has an evaluation system top management of Manila Water follows to measure the performance of the Board the principle of prudent and efficient and the Executive Officers of the Company expense. As a policy, the reasonable per in terms of good governance practices. This diems of the Board of Directors should is done annually and the results thereof are not be more than 1% of the Company’s net discussed in the Board meeting. income of the preceding year, while the total compensation of top management should not exceed PhP100 million on an annual basis. The performance of the Company Policies and Principles Regarding Human Rights and Corruption is the benchmark for the determination of prudence of the directors’ and management’s Manila Water is currently setting up a process per diem and compensation but these costs for human rights screening. For now, the are not solely subject to the directors’ Company ensures that all contractors follow discretion. Any adjustment to existing the Vendor’s Code of Conduct and the Board and top management compensation is Deed of Undertaking Ethical Procurement thoroughly deliberated upon by the members Standards. Moreover, for its employees, the of the Board’s Compensation Committee, Company strictly complies with the Labor composed mainly of independent directors, Code of the Philippines and its provisions on and approved by the shareholders during the wages, hours of work, employment of women, general membership meeting. health safety and social welfare benefits, and labor relations. Avoidance of Conflict of Interest Manila Water also puts a premium on addressing corruption. All its employees have Manila Water has a Corporate Governance undergone anti-corruption training, and those Manual which institutionalizes the best who failed to meet the Company’s code of governance practices used to guide the day- conduct were meted the proper punishment. to-day business of the Company. The Manual incorporates certain guidelines on conflict of interest which applies to all employees, members of the Board of Directors, and top Mechanisms for Shareholders to Provide Recommendation or Direction management. Among the salient features of the Conflict of Interest policy is the Consistent with the Philippine Corporation requirement for everyone in the Company, Code, Manila Water’s Corporate Governance regardless of position or designation, to Manual provides for security on the disclose any instance of conflict of interest, participation of its shareholders in Company whether actual or apparent, immediately upon direction and strategy. Furthermore, the knowledge of its existence. In the case of the Manual considers additional shareholder Board of Directors the disclosure on Conflict rights, to wit: (1) it is the duty of the directors of Interest is also made public in accordance to promote shareholder rights, remove with the terms and conditions provided impediments to the exercise of shareholder under the Securities Regulation Code and its rights and provide effective redress for Implementing Rules and Regulations. violation of their rights; (2) the members of company profile 13 the Board of Directors shall encourage the supply will allow Manila Water to prepare for exercise of the shareholders’ voting rights. future dry spells that may hit the country. The stockholders should be encouraged Also being addressed are risks related to to personally attend such meetings. If they corruption. An Enterprise Risk Management cannot attend, they should be apprised ahead (ERM) process will be rolled out this year, of time of their right to appoint a proxy; (3) it is and initial results show that a number of the duty of the Board of Directors to push for departments, particularly those that regularly the resolution of collective action problems interface with customers, suppliers and through appropriate mechanisms; (4) the contractors, identify fraud risk as one of the Board of Directors has the duty to conduct top risks they encounter. The Company is a transparent and fair annual and special taking steps to educate its different units stockholders’ meetings of the Company; and in identifying and combatting corruption (5) the minority stockholders has the right through proper training. to propose the holding of a meeting and the right to propose items in the agenda of Significant Changes in 2011 the meeting that relate directly to legitimate business purposes, all in accordance with the In 2011, Manila Water made some changes By-laws. in its organization in response to emerging business needs. The Company formed the Enterprise Risk Management Strategic Asset Management (SAM) Group to take the lead in evaluating, rationalizing, Manila Water continues to undertake planning and transforming the Company’s assets. To improve its stakeholder may adversely affect business operations. engagement and communication processes In 2011, the Company focused on reducing and leverage on its sustainability initiatives, risks brought about by climate change. Manila Water likewise created the Corporate Extensive risk assessment was conducted Strategic Affairs Group (CSAG). by different groups within the Company to Moreover, draw up strategies and plans to mitigate the leadership team as it welcomed on board Mr. risks posed by climate change. In addition, Ferdinand ‘Ferdz’ Dela Cruz as the new Group Manila Water has a Disaster Preparedness Director for East Zone Business Operations, as Plan to be able to respond quickly to major well as for CSAG. Before joining Manila Water, natural disasters such as earthquakes and Mr. Dela Cruz was the head of Consumer Sales floods, two calamities that can directly affect Group of another Ayala subsidiary, Globe the Company’s dams and water supply. Telecom. He brings with him a wealth of key Critical structures and facilities are also being leadership experiences in sales, distribution strengthened and retrofitted to enable them and marketing from his previous work with to withstand a 7.2 magnitude earthquake, Kraft Foods, Ayala Land, San Miguel, Unilever which experts say might hit Metro Manila in Philippines the near future. graduated cum laude from the University of The Company also seeks to reduce its reliance the Philippines and a board topnotcher in the on Angat Dam for its water supply with the 1987 Mechanical Engineering licensure exam. Laguna Lake/Rizal Province Water Supply He was also named Outstanding Mechanical Improvement Project, which was launched in Engineering Alumnus of the State University 2011 and is part of the Company’s 2008 Rate in 2001. Rebasing Plan. Augmenting the current water 14 master measures to mitigate the many risks that manila water 2011 sustainability report the and Company Inbisco reinforced Philippines. its He Awards and Recognitions Asian Human Capital Award Manila Water became the very first Filipino company to receive the elite honor from the Singaporean Ministry of Manpower when it captured the grand award for harnessing its people in transforming from a struggling utility into a world-class water and wastewater service provider. The Company was cited not only for its accomplishments but also for the way it has turned around its business using its human resource. One of the World’s Most Environmentally Aware Manila Water was the only Philippine company and one of just eight in Asia to have been cited in the study by the World Economic Forum as one of the top 16 “Most Environmentally Aware” companies from across the developing world. This is a fitting follow-up to the recognition it received from Finance Asia in 2007 as one of the Top Greenest Companies in Asia. Ecoswitch and Green Coin Award Green Philippine Islands of Sustainability (GPIoS), a part of the European Union in the Philippines SWITCH – Asia Programme, recognized the efforts of Manila Water through the Ecoswitch Award which symbolizes the successful implementation of environmental measures built on the triple bottom line approach. The Company also received the Green Coin Award for realizing the most savings from its Ecoprofit / Cleaner Production Implementation which has reduced waste, increased energy efficiency and improved health and safety of workers, among other benefits. Top: Photo shows Manila Water President and CEO Gerardo C. Ablaza, Jr. and Corporate Human Resources Group Director Ruel T. Maranan with the 2011 Asian Human Capital Award trophy. Bottom: Operations Group Director Geodino V. Carpio, together with Christine Casabar and Mark Mulingbayan of the Environment Department, receive the Ecoswitch Award on behalf of Manila Water. company profile 15 Sustainability Model Manila Water’s sustainability approach can be clearly seen from its corporate vision, which states: Our vision is to become a leader in the provision of water, wastewater and other environmental services which will empower people, protect the environment, and enhance sustainable development. Sustainable Development Framework Helping Build Communities Protecting the Environment Sustainability Policy Manila Water puts a very high premium on sustainable development and as much as practicable, integrates its principles into its business processes. Manila Water believes Developing our Employees that the continued sustainability of its business is dependent on the communities that it serves and the environment that supports its Safeguarding Health Contributing to Local and National Economies resources. This policy is consistent with the Company’s values in promoting corporate social responsibility. With this in mind, the Company will be able to address the needs of the communities, the environment and the economy, without sacrificing quality. Commitments Manila Water commits to: • Help build communities by providing them with potable water, sewerage and/ or sanitation services at affordable rates; • Develop and promote programs that would nurture, protect and conserve our natural resources; • Operate the business in a way that the health of our employees, service 16 manila water 2011 sustainability report Alignment with National and International Programs Millennium Development Goals (MDGs) Philippine Development Plan Water Provision to the Urban Poor Water Education Environmental Protection Dr. Gelia T. Castillo National Scientist, Philippine National Academy of Science and Technology providers and the general public would be safeguarded; • Develop self-sustainability of targeted communities by instituting capacitybuilding mechanisms and livelihood programs; • Assess and manage risks associated with our operations by instituting and adopting mitigating measures; • Incorporate the principles of corporate governance in all 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; and • Design and develop an environmental management system that would ensure the sustainability of our operations. More than five years ago, I was invited to be a discussant of the UNDP Water Report. Thinking about what to say, I remembered [former President] Mr. Antonino Aquino’s presentation about Manila Water at a roundtable discussion. Quite impressed and wanting to see it for myself but not knowing anybody in the company, I sent an e-mail to Mr. Jaime Augusto Zobel de Ayala asking for an opportunity to visit Manila Water. They took me to the community where I saw lined up water meters instead of pails waiting for their turn to get their day’s water supply. They brought me to the shop where meter protectors were being made as the livelihood of the community. Subsequently, I learned that Manila Water has the cheaper water price, lower than the municipal water system; has substantially reduced non-revenue water; delivers safe water 24/7 to everybody in their area of operation, most of all to low-income households; provides potable water to schools and on top of all these: Manila Water makes money! There is “business at the bottom of the pyramid”. Manila Water has Corporate Social Responsibility embedded in their daily operations. I cannot believe that the pails are gone and they now have water meters one after the other. The Manila Water story is just too good to be true, except that it is true. That’s the wonder of it all! sustainability model 17 Partners in Sustainable Growth The Stakeholder Universe Employees Community / Customers Regulators National Government Agencies (NGAs) Finance Community Local Government Units (LGUs) Supply Chain Civil Society Notes: 1. “Finance community” includes shareholders, investors, analysts, lenders and auditors. 2. “Supply chain” includes contractors, service providers and suppliers. 3. “Civil society” includes non-government organizations (NGOs), academe, church and the media. 4. “Employees” also includes the Company’s workers’ union. 18 Consistent with the guidance of ISO identify pressing issues and to get their 26000 that stakeholder identification and feedback on Manila Water’s sustainability engagement is one of the two fundamental efforts. Ultimately, these discussions were principles of social responsibility, Manila aimed at more effectively communicating Water fine-tuned its overall stakeholder with the Company’s stakeholders by means management strategies. As a first step, the of a focused and value-adding Sustainability Company reviewed its stakeholder map to Report that centers on issues and programs ensure that all relevant groups are considered that are material to them, and at the same time, in developing its sustainability programs. are relevant to its business operations. Manila The figure above shows the Company’s Water was also guided by GRI’s Materiality stakeholder universe. Principle in defining the scope, content and In addition, the Company conducted Focus boundary of its 2011 Sustainability Report. Group Discussions (FGDs) and interviews Moving forward, the Company will continue with each of the stakeholder groups to to take note of both the best practices that manila water 2011 sustainability report Manila Water will regularly seek and accept feedback on how it can more effectively respond to its stakeholders’ needs and expectations. Photo shows one of the FGD sessions with stakeholders conducted by Manila Water as part of its preparation for this Report. Salvador “Buddy” Oberas News Manager, DZXL RMN Manila Radio stakeholders think it should continue, as well as the gaps and areas for improvement that Manila Water has to work on. Likewise, the Company will regularly seek and accept feedback on how it can more effectively respond to its stakeholders’ needs and expectations, and how it can maximize the social and environmental impacts of its programs. Manila Water will also continue to partner with various stakeholders in promoting its three focus areas on water supply provision to the urban poor, water education and environmental protection. Being in the broadcast media, I can personally attest how Manila Water manifested their thrust and effort for public service. The Company is selfless in their CSR role and support on various outreach and socio-civic activities. They really do walk an extra mile in reaching out and giving solutions to concerns such as water availability, affordability and customer service. The constant repair and rehabilitation and pipe-laying for the future, even to a common ‘masa,’ is Manila Water understandably working for the next generation. Mabuhay, Manila Water! partners in sustainable growth 19 What Sustainability Means to Our Stakeholders Employees Management Team • Pertaining to the environment; giving Community/ Customers back what you extract Employees’ Union • Continuous growth • Meeting the needs of human beings • Giving what is due to customers • Improving current systems and • Maintaining; continuing • Improving • Is able to drink clean water • A necessity • Studying what needs to be done • Adaptable to change • Maintaining what has been started • Start without an end • Continuing with improvements practices NGAs • Prudent use of our finite resources for development without compromising the need of the future generations LGUs • An activity that aims to make • Responding to the needs of the people • Liveable communities • Efficient use of resources • Something that you can the community/environment better from what it is today for the benefit of tomorrow’s generations continue on Supply Chain Regulators • Reliability of water supply • Ability to endure • Sustain water resources • Today and tomorrow • Long-term; forward-looking • A cost-benefit analysis that gives equal Finance Community importance to both short- and longterm impact • A state or condition which allows an organization to achieve key near-term objectives without impairing potential future growth. • Striking an appropriate balance between the needs of the present and the needs of the future • Constant progress and the endeavour to achieve long-term structural growth in place of short-term gains Media • A lifetime commitment; it values the concept of providing long-term solutions for a specific market, audience, or area of responsibility — environmental, social, and economic, to name a few • A continuous process, a progressive approach to creating impacts that is all-encompassing because it can be managed and maintained by conscientious individuals. In sum, sustainability is a gift that empowers people to build a better world for the future generation. 20 manila water 2011 sustainability report Civil Society NGOs • Organizational mission and vision are relevant to society and needs of the people • While meeting the needs of the present, leave sufficient resources for future generations • Equitable distribution of resources • Democratizing water; making water more accessible to all • Responding to changing conditions of the climate Academe • The equilibrium between economics and environment; between making financial sense while maintaining ecological balance so that natural resources are not compromised • A balance between and among competing yet equally important aspects of development- social equity, economic development and environmental management Stakeholders Issues Commendable Practices/ Initiatives Suggested Improvements Employees Management Team • Career growth • Training and development • Incentives / recognition program / promotion • Compensation and benefits • Unity and teamwork • Strong corporate values and business ethics • Solid company reputation • Contribution to national development • More robust systems / processes and communication for human resource matters • Change management program to address leadership and organizational transitions Employees’ Union • Job security • Compensation and benefits • Job fit • Training and development • Corporate brand connotes excellence • Strong corporate values and business ethics • Concern for employees and their dependents • Skills upgrading and development • Standardize rewards system • Appropriate training and transition before employee cross-posting Community / Customers • Water supply service and sustainability • Sewerage and septic tank deslugding services • Affordability of rates • Project implementation • Customer service and communication • Provision of 24/7 and • Better implementation potable water supply and faster completion of • Quick-action customer projects and civil works service and good • Expansion of and better community relations customer communication • Livelihood programs about wastewater • Innovations and flexibility services in delivering efficient services Regulators • Compliance with concession obligations • Access to water supply • Quality project execution and workmanship • Human resources seen as • Capitalize on the most valuable asset concession as a means • Employee empowerment and privilege to serve the and training public NGAs • Project implementation, impact assessment and communication to the public • Sewerage and septage management • Good and effective wastewater programs • Efficient operations; reduction of NonRevenue Water (NRW) • Better coordination with NGAs with regard to project implementation • Systematic scheduling of projects • Efficient space management at project sites • More effective project announcement and communication LGUs • Water supply potability, availability and sustainability • Wastewater programs • Cost of water • Customer service and communication • Reliability of services during calamities / disasters • Visibility of Manila Water employees in service areas • Prompt response to customer concerns • Strong partnership with LGUs • Constant drive to improve services • Support to low-income communities and during disasters • Expansion of wastewater programs • Better project implementation and faster project completion • Development of new water sources • Partner with LGUs for marketing and advocacy campaigns partners in sustainable growth 21 Stakeholders Issues Commendable Practices/ Initiatives Suggested Improvements Finance Community • Profitability • Short-term and longterm strategy / growth story • Ability to generate positive free cash flow in the long-term • Cost control; sustainable business model • Clear and open communication to the investing community • Constant drive to enhance shareholder value • More visibility on interim and planned capital expenditures Be open to other operational models to ensure continued financial viability Supply Chain • Continuous flow of projects / orders • Cost of projects / materials • Communication between vendor and Manila Water employees • Processing of requirements, accreditation and payments • Training and development programs • Good relationship and communication with vendors • Stable jobs; good business partner • High standards on technical / engineering matters • Emphasis on health and safety • Improve documentation, billing and payment processes • Prompt notices on new technical standards and/ or specifications • Provide vendors with a Standards Manual NGOs • Water supply source and sustainability • Quality / potability of water supply • Wastewater management • Efficient use of water resources; water recycling and reuse • Cost of water • Climate Change mitigation and adaptation • Disaster preparedness • Community participatory approach in solving water problems • Active participation in environmental programs such as watershed protection • Advanced sewerage and sanitation management • Operational efficiency • Link with institutional / community partners for environmental advocacies • Improve stakeholder communication and educational campaigns • Conduct studies on alternative technologies and appropriate innovations Academe • Access to water • Affordability of tariff • Protection of water resources • Wastewater services • Stakeholder engagement • Wide coverage of water service, including marginalized communities • Protects basic human right to water • Environmental initiatives, particularly watershed management • Continue operating in the most efficient manner possible • Harness the expertise of the academe in engaging stakeholders Media • Water supply availability, quality and pressure • Affordability of tariff • Role in CSR • Customer service • Stakeholder communication • Reliable water supply even during power outages • Good customer service; quick to respond to customer complaints • More visibility to customer areas • Better public announcement on water interruptions • Strengthen media awareness on water and environmental issues Civil Society 22 manila water 2011 sustainability report Atty. Mark Anthony M. Gamboa, EnP. Renato Brion Regional Director - National Capital Region, Philippine Department of Interior and Local Government We look at Manila Water as our partner in our quest for an effective governance of Metro Manila particularly with regard to water and how it sustains life in the Metropolis. So in just every aspect of life where we can work together, we can assure the company of our full support. We subscribe to Good Governance as a means to sustaining human development, enabling every citizen achieve fullness of being a human, being a person. This becomes a reality as each citizen enjoys the fruits of human production (e.g. food, shelter, health, education and more) to the point of living a meaningful life in the service of God, humanity and country. Water is life. It sustains all living things, including food, which reinforces sustenance of life on earth. Depending on its volume and quality, it could be an asset or a liability. The rise in population density in Metro Manila has seen to the swift exhaustion of fresh underground water resources. It has become necessary the past two decades to divert excess water in Bulacan to quench the thirst of more than 15 million people a day in the Metropolis and peripheries in Regions III and IV. Persistence of this situation may eventually require serious and thorough consideration of issues. Faculty Member and Residential Program Coordinator, Center for Public Administration and Governance Education, National College of Public Administration and Governance (NCPAG), University of the Philippines As a stakeholder of Manila Water, I believe that the most important issue is the ability of the Company to ensure the sustainable delivery of potable water supply. The Company’s program of providing access to poor communities especially where water-related health risks are prevalent is exemplary and should be continued. By providing access to clean and safe drinking water, the Company helps in ensuring that a basic human right of the people is protected. The role that the Company plays in the attainment of the MDG target on halving the population without access to safe and clean drinking water by 2015 cannot be downplayed. The protection of the environment as another important component of sustainable development is addressed by the Company through its efforts in ensuring that water resources are protected – from the source to water users and back to source. Manila Water has invested not just in the protection of the watersheds but also in providing sewerage and sanitation services to its consumers. The engagement of Manila Water’s stakeholders in its efforts to continuously work for sustainable water supply provision is crucial. The academe can be a partner in finding equilibrium among the demands of the government and water users on one side and the peculiarities of water service providers on the other. partners in sustainable growth 23 Employees as Catalysts to Sustainable Growth Management Approach Manila Water has always put its employees at the fore of its social responsibility in recognition of their valuable contribution to the Company’s transformation from what it was 15 years ago to a strong and financially viable enterprise to date. Manila Water acknowledges that if not for them, the Company would not have had the opportunity to serve millions of people in eastern Metro Manila, especially those in lowincome communities. The Company’s labor practices uphold the highest national and international standards 24 manila water 2011 sustainability report and policies against discrimination, child of communication to employees across all labor and forced labor, to name a few. Manila levels in the organization to see to it that Water extends this to its business partners their concerns are properly addressed. who are expected to abide by the same set Even after retirement, Manila Water looks of strict laws and regulations. after its employees’ welfare by assisting in As its most priced asset, Manila Water a number of livelihood and development ensures that employees enjoy competitive programs. compensation, benefits and rewards to With all these policies in place, Manila improve their standard of living, are provided Water has never had any case of labor with appropriate development and training non-compliance or malpractice vis-à-vis opportunities for their professional and national and international standards. The personal growth, and are operating in safe Asian Human Capital Award that was given and healthy working conditions to prevent to Manila Water in 2011 is a strong testament and mitigate occupational hazards. The to this fact. Company likewise maintains an open line 25 Summary of Employees Mr. Gerardo C. Ablaza, Jr. updates the employees on Manila Water’s performance and challenges in one of the regular AllManagers’ Meetings. total workforce 1,833 supervised workers 262 Employee Levels by Gender 540 male regular employees 1,571 539 male 336 female Note: The succeeding figures pertain to regular employees only. P7,825 26 manila water 2011 sustainability report 52 male 32 female senior management 84 72 female middle management rank and file 876 611 Employee Distribution per Area by Age more than 50 years old 596 319 employees by nationality local employees 1,570 1 foreign employee 30 to 50 years old 706 405 less than 30 years old 269 29 44 38 38 137 51 Main Office* 861 9 Balara BA 89 46 34 12 Cubao BA 96 9 Makati BA 81 37 34 37 14 26 50 21 24 16 27 Pasig BA Rizal BA Taguig BA Mandaluyong BA Marikina BA 85 31 42 107 21 111 68 20 73 * including employees based in the Company’s facilities Hiring Practices place a clear hiring policy that does not tolerate employment of minors. Thus, all new Manila Water values the work of its people employees should be 21 years old and above. and constantly seeks to hire the best available Similarly, the Company conscientiously talents. The Company does not only look at complies with the Code’s Working Conditions the talent’s competencies and skills set, but and Rest Periods, Hours of Work and Weekly more importantly at his personal values and Rest Periods. For operations that require principles which must be aligned with Manila a 24 x 7 work schedule, Manila Water sets Water’s core values. However, it ensures that shifts for employees such that they have two while it observes this strict rule, it does not consecutive rest days per week. Meanwhile, discriminate on the basis of gender, race, overtime work, night differential, and work religion or culture. In addition, Manila Water during holidays are paid legal premium rates shows strong bias for Filipino talents as they for rank and file employees. are more familiar with, and thus can more Furthermore, there had been no violations easily adapt to, the socio-political landscape reported on the Indigenous Peoples Rights in its service area. This is also one way by Act even as Manila Water contracts three which the Company contributes to national Dumagats as caretakers of its facilities economic growth. because the Company abides by its provisions In compliance with the Labor Code of the for Social Justice and Human Rights. Philippines, Manila Water has also put in employees as catalysts to sustainable growth 27 New Employees Hired per Level Employee Turnover per Age by Gender by Age and Gender total male employees 30 to 50 years old 11 10 total male employees 61 total male employees less than 30 years old 26 27 male 24 total female employees 30 to 50 years old 5 5 total female employees 34 total female employees less than 30 years old 23 27 female 17 male 17 male 22 4 female 3 female 30 to 50 years old more than 50 years old 2 1 senior management 1 1 middle management 61 less than 30 years old rank and file 3 54 21 20 The Company does not only look at the talent’s competencies and skills set, but more importantly at his personal values and principles which must be aligned with Manila Water’s core values. Compensation and Benefits harder and stay with the Company. For instance, of the 16 employees (out of Manila Water offers competitive packages to the 1,209 who are entitled) who went on all its employees. Even at the entry level, the parental leave in 2011, 100% returned to Company’s employees receive compensation work and continued to perform well in their that is about 33% above the local and national jobs. minimum wage. In the same manner, the In the same manner, Manila Water extends its Company’s salary structure observes gender assistance to retiring employees by means equality as the basic pay for male and female of a robust retirement plan with well-defined employees do not vary significantly. rules and regulations, investment guidelines Moreover, regular employees enjoy a wide and trust agreement. The Company’s range of benefits that are beyond those retirement plan comes from the accrued mandated by the government. Through contributions of Manila Water that comprise this, the Company is able to look after the 100% of the retirement and welfare fund. In welfare of its employees and, indirectly, addition, Manila Water provides livelihood their families. For their part, employees opportunities to retired employees who have appreciate Manila Water’s workplace ably served the Company. practices and are thus motivated to work 28 manila water 2011 sustainability report Employee Turnover per Area by Level senior management 3 3 middle management 72 49 4 rank and file 20 4 7 3 Main Office 59 Balara BA 3 4 1 1 1 Cubao BA Makati BA 5 6 3 4 2 Mandaluyong BA Marikina BA 2 2 1 5 Pasig BA 8 Rizal BA 2 3 Taguig BA 9 Avertano Bastasa ratio of basic salary (MAle to Female) 0.97 1.00 senior management middle management rank and file -0.97 0 Caretaker, Manila Water Fitness Center; and Retired Manila Water Employee I am thankful to Manila Water because even after retirement, I was given the opportunity to work with the Company as the Fitness Center caretaker. When my 12 years of employment with Manila Water as a Wastewater Plant Operator ended in 2009, I sought other income generating opportunities. I started a small business which eventually caused stress and took a lot of my time. In 2010, I was offered a post by the Company as the lead caretaker of the newly-constructed Fitness Center. I accepted the offer and was happy with the job. I find the work enjoyable, plus I also get to use the gym to play with my former colleagues. Even after retirement, I still feel that I am a part of the Manila Water family. employees as catalysts to sustainable growth 29 Employee Benefits Manila Water ManCom members led by Mr. Gerardo C. Ablaza, Jr. join the 2011 Huwarang Manggagawa winners in recognition of their valuable contribution to the Company. Government-Mandated 1. Social Security System (SSS) 2. Pag-Ibig Housing and MultiPurpose Loan 3. 13th Month Pay 4. 5 Days Service Incentive Leave 5. 60 or 72 Days Maternity Leave 6. 5 Days Paternity Leave 7. 7 Days Solo Parent Leave Company-Provided 1. Guaranteed three months bonuses 2. Health Insurance (including one free dependent and discounted rates for additional dependents) 3. Wellness benefits (including medical and dental services) 4. Life and Accident Insurance (including one dependent) 5. Uniform 6. Encashment of Allowable Sick Leave and Vacation Leave Credits 7. Car Loan and Multi-Purpose Loan for Covered Management-Level Employees Alfredo Ele UP STP Plant Operator, Wastewater Operations Department; and 2011 Grand Huwarang Manggagawa Awardee, Manila Water 8. Flexible Benefits 9. Emergency Loans 10. Bereavement Assistance 11. Hazard Pay for Employees with Exposure to Safety Risks 12. Overtime Pay for Rank and File Employees 13. 15 Days Sick Leave 14. 15 Days Vacation Leave I have been with Manila Water for 15 years now, and have been a witness to the transformation, most especially with the improvement of employees. We were given a chance to take the trainings we needed to be able to develop our skills. I was able to combine the teachings and the experiences I had to become a better employee. Most importantly, the Management was truly supportive of their employees. Here in Manila Water, even if you are at the lowest level of the hierarchy, Management still notices and recognizes you. On being a Huwarang Manggagawa, I felt that it was really a blessing. When they interviewed me, I answered according to what I was doing; I didn’t know that the things I did would make a big difference for the Company. (Translated) 30 manila water 2011 sustainability report 15. 3 Days Special Leave Measuring and Rewarding Performance Manila Water is quick to recognize and reward outstanding employees based on their performance during the prescribed period. This system is anchored on a clear and specific set of targets and indicators, thus minimizing subjectivity or discrimination during performance evaluation. In 2011, 63% of its employees underwent a formal yearend performance appraisal while the rest, comprised of Union members, are covered by the provisions of the Collective Bargaining Agreement. Photo shows the 2011 Chairman’s Circle (C2) awardees with Manila Water Chairman Fernando Zobel de Ayala and President and CEO Gerardo C. Ablaza, Jr. In 2011 alone, 151 exemplary performers and high-potential talents were recognized. Bonnie Ty Manager, Sanitation Services and Sewer Network Maintenance Technical Support Services Wastewater Department – EZBO; and Six-time P3 Awardee, Manila Water People empowerment is one of the major practices that Manila Water stretches to its employees. I appreciate the trust they have given to its constituents. In my 15 years of stay in the Company, they have given me the training and exposure in the business process that I needed. They were confident in my development and it all turned better than expected. I was also given a chance to be exposed internationally through the PROTEXT or internship program of Manila Water and United Utilities, and this has taught me to interact well enough and develop my self-confidence. All the learning, exposure and trust I gained reflected on my performance, being a sixtime P3 awardee. Here in Manila Water, they give their people opportunities to excel and grant worthy recognitions for their exemplary performance. Marilou Bago Head, Logistics Department; and Consistent C2 Awardee, Manila Water I have been with the water supply industry for the last 32 years including my years of service in MWSS. I started as backroom support personnel and later became chief accountant for Manila Water Company under the Finance Group. The big change came along when I was pulled out and appointed to head the Logistics Department in October 2004. The tasks were huge and challenging. Nevertheless, I strongly felt the trust and confidence bestowed upon me by the management. I was empowered. This empowerment coupled by consistent good leadership from the top and clear vision motivated me to do my best. I was transformed - from working at the backroom to being at the forefront. Using my financial management experience backed up by a strong quest for integrity, I worked towards synchronizing the projects materials requirement, inventory management, procurement and vendor management and development. The work was susceptible to corruption, but I never entertained any attempt of bribery. The contribution of the Logistics Department to the increase in billed volume up to the 1100 MLD level and reduction of non-revenue water to 11% is a source of pride. The C2 awards I have received reinforced my self-worth and have been a source of further motivation. Manila Water has thoroughly trained me and with this solid foundation, I am willing to do my best at any given task, to ensure positive quality results for the company. employees as catalysts to sustainable growth 31 The Company commits to keep its openness and transparency to Union members. Apart from the financial incentives given to covered employees, Manila Water holds three annual recognition programs for all employee levels – ‘Huwarang Manggagawa’ for rank and file employees; President’s Pride due to Performance (P3) Award for middlelevel managers; and Chairman’s Circle (C2) Award for senior managers. In 2011 alone, 151 exemplary performers and high-potential talents were recognized through these programs. Labor-Management Relations Manila Water has always supported the Freedom of Association and complied with the Labor Code of the Philippines’ section on Collective Bargaining and Administration Agreements. The Company has also sustained a harmonious working relationship with the Manila Water Employees’ Union (MWEU), of which 37% of the total regular employees are members. As proof of that, the management and the Union successfully inked a new CBA in December 2011 that will be in effect for the next two years. Under the new CBA, the Company and the Union agreed to continue strengthening the social benefits of its members with the retention of the Welfare Fund, the Union Cooperative, and the Livelihood Program for the dependents of its rank and file employees. Furthermore, the new CBA grants all rank and file Union members a lump sum in the amount of PhP35,000 in lieu of an across-the-board increase, as well as a concession benefit of 32 manila water 2011 sustainability report Mr. Luis Juan B. Oreta, Chairman of the Management Panel, shakes the hand of Mr. Eduardo Borela, President of the Manila Water Employees’ Union, after the successful closing of the 2011 -2012 CBA. PhP10,000 for each Union member which goes directly to the Union. The new CBA also puts emphasis on the occupational health and safety of the Company’s employees. Under the agreement, Manila Water will continue Eduardo Borela to provide safe working conditions and President, Manila Water Employees’ Union safety gadgets, while giving distress pay for employees assigned to Wastewater Treatment Plants. The Company will also study, in cooperation with the Philippine Department of Labor and Employment (DOLE), the possibility of giving hazard pay for employees assigned to Water Treatment Plants who are exposed to toxic chemicals. Moreover, the Company shall assume the cost of hospitalization of an employee in excess of his or her medical and hospitalization insurance coverage in case of work-related trauma or accident. A grievance mechanism is also in place to settle disputes or disagreements between the Company and the Union or its members that relate to working conditions, violations of the provisions of the CBA, or matters affecting labormanagement relations, including disciplinary actions and those arising from the interpretation or enforcement of Company personnel policies. In such cases, a Grievance Committee composed of three representatives each from the Company and the Union will be tasked to handle the complaint. If no resolution is reached, a Board of Arbitration with one representative each from both sides and W e n e e d t o consider the new challenges for both the Management and the Union – continuous financial crisis, unpredictable natural disasters and other related challenges. With this, the Union leadership aligned its actions and focused on programs that ensure a sustainable partnership with the Management. This was realized with the continuous peaceful and harmonious relations in our working environment in the last few years. Our working environment is free of conflict. There is an open communication between the Management and the Union. Work related concerns affecting some employees were addressed favorably and amicably. Our established partnership enhanced the level of trust and respect between both parties resulting to a more liberal attitude towards the Union. With this, a reasonable CBA was concluded. The Union was given the opportunity to participate in various programs and livelihood projects for its members. The management granted to all employees financial assistance during crisis or disasters and other support extended during those period. employees as catalysts to sustainable growth 33 Training Hours per Level by Age and Gender total male employees more than 50 years old 1,788 1,552 total male employees 30 to 50 years old 3,336 total male employees less than 30 years old 1,984 total female employees more than 50 years old 3,188 1,158 a third party shall take over. For the past total female employees 30 to 50 years old related to human rights, discrimination 14 years, there had been no grievances 2,008 or any other labor malpractice. Moreover, the Company makes sure that total female employees less than 30 years old Union members are properly informed 2,236 1,684 through regular dialogues, consultations and meetings. At least one week notice is typically provided to rank and file 400 employees and their elected representatives prior to the implementation of significant operational changes. The Company commits 1,488 to keep its openness and transparency to 292 Union members to further strengthen the partnership between the management team 678 236 376 1,692 532 148 8 80 144 and the Union. Training and Development 12 senior management middle management rank and file Manila Water invests heavily in the development of its employees by providing total training hours 12,510 815 employees trained average training hours per employee 1,536 1.92 PhP 7,825 average training days per employee total amount spent per employee 34 manila water 2011 sustainability report them with extensive trainings and seminars covering a wide variety of topics that address current and upcoming business requirements. In 2011, a total of 12,510 hours were spent for carrying out training and development programs that equipped 815 employees across all levels in the organization, and regardless of age and gender. The Company’s training and development programs in 2011 focused on at least four broad topics: 1. Leadership and General Management (e.g. Leadership Institute For Manila Water Employees (LIFE), Finance Management Workshop; Enterprise Risk Management (ERM) Trainers’ Training; ERM Champions’ Training; Management Development Training Program (MDTP); and Cadetship Training Program) 2. Safety (e.g. Confined Space Entry; Basic Occupational Safety and Health; Chemical Safety and Spill Responsibility; and First Aid and Basic Life Support) 3. T e c h n i c a l , P r o j e c t a n d C o n t r a c t Management (e.g. Contract Awareness Training; Managing your Contractors’ Health and Performance; Standards; and NRW Management) 4. Specialized Skills (e.g. Customer Service; Technical Writing; and Computer Technology) These programs yielded positive results as employees gained the necessary skills and additional knowledge to carry out their dayto-day business functions. Aside from these trainings, the Company had all its employees undergo an anti-corruption training program, and is now working to give adequate training for its employees on human rights. Occupational Health and Safety Manila Water prides itself in having an excellent occupational health and safety record, as shown in the statistics board next page. There are several health and safety committees within the organization that tackle such relevant issues as HMO screening, safe working conditions, and the use of personal protective equipment. Over 25% of the workforce is represented in these various joint management-worker health and safety committees. Because of its safety milestones and impressive performance, Manila Water won an Award of Distinction from the Safety Top: Awardees of the 2011 President’s Pride due to Performance (P3) pose with Manila Water President and CEO Gerardo C. Ablaza, Jr. and the rest of the ManCom. Bottom: Manila Water keeps its employees safe by providing them personal protective equipment such as hard hats. Karoline C. Sangalang Head, Financial Controllership Department; and Member of the first batch of the Cadetship Training Program, Manila Water I have personally witnessed Manila Water’s commitment to developing employees. I have undergone several leadership training programs throughout my career in Manila Water but the Cadetship Training Program was the one that provided me the leadership foundation that equipped me the most when I took on different and bigger roles in the organization. The Cadetship Training Program exposed me to the different operating units and deepened my understanding of the Company’s operations. Now that I am managing people, I encourage my staff to maximize the development programs that the Company is implementing. These programs will enable them to effectively perform their duties by improving both their technical and leadership competencies. employees as catalysts to sustainable growth 35 Health and safety statistics board injury rate 0 0.25 0 0.026 occupational disease rate lost day rate absentee rate Notes: 1. “Days” refers to scheduled work days 2. “Lost Day” count begins the day after the accident 3. Injury rate includes fatalities Tom Mattison (second from left), Operations Support Services Director, and Dexter Quibuyen (third from left), Safety Solutions Department Head, lead the Manila Water contingent at the awarding ceremonies of the Safety Organization of the Philippines, Inc. Organization of the Philippines, Inc. (SOPI) for achieving more than five million safe manhours. The milestone also led to the awarding of 2011 Outstanding Safety Practitioner to its Corporate Safety Manager. Moreover, the Company was given a Safety Recognition Award by the Department of Labor and Christian M. Tagros Head, Standards and Quality Department, Manila Water Employment – Bureau of Working Conditions for implementing effective programs and activities on occupational safety and health. The Company also offers programs on 36 Manila Water’s employee training programs have equipped me, not only on technical matters but the management aspect wellness and safety education for employees, as well. The LIFE program for department managers and other key positions, for instance, has helped me in my desire to contribute more to the organization. It reinforced my personal values and skills to effectively manage my team in supporting our internal customers to drive business results. Technical training programs have equally prepared me and my team to effectively work with the different stakeholders in our projects. This is to ensure that suitable engineering standards would be used resulting to more efficient water and wastewater systems that are at par with the best in the world. As we face new horizons and challenges ahead, I am certain that Manila Water will continue to equip its managers to carry on with the excellent service that we provide to our customers within and beyond Metro Manila’s East Zone. and awareness on health and lifestyle, and manila water 2011 sustainability report their family members, and community members. Wellness programs cover an audiometry test for plant operators, counselling on employee diseases, wellness bulletins on seasonal diseases, education physical activities like aerobics, weight lifting, and cardio exercises. Safety programs offer counselling and trainings on prevention and risk control and treatment of serious diseases. Security All 173 security personnel of the Company are well trained in carrying out employee security and policies and procedures concerning aspects of human rights that are relevant to Manila Water’s operations. These include trainings in the Bill of Rights, firearms proficiency, customer care, bomb disposal, VIP protection seminar for selected guards, water search and rescue, fire brigade, civil disturbance, and the criminal justice system. The Company also offers programs on wellness and safety education for employees. April Rose Francisco Demand Development Manager, Market Development Department; and Member of the first batch of the Management Development Training Program, Manila Water Aimed to adapt to the rapid business expansion, the Management Development Training Program (MDTP) was developed to hone experienced talents who will bring in fresh pair of eyes into the operations and contribute something of value to the company. Being a part of the pioneer batch of the MDTP is both an honor and a challenge for me. Honor, since I was one of the selected few to be given an opportunity to start a career in the water industry and take part in promoting economic development by serving more than 6 million Filipinos. At the same time, it is a challenge to apply my previous work experience to my role and continuously uphold the rationale behind the foundation of the new training program. I believe that my MDTP experience has played a vital role not only in my personal growth but also in my professional advancement in Manila Water. These learnings have equipped me with the set of skills and mindset that will enable me to help fulfill corporate goals. 37 Clean Water for Healthy Communities Management Approach Manila Water leverages on its position as a major water and wastewater service provider to supply clean, potable and affordable water to more than six million people in its concession area to keep them safe from health hazards caused by contaminated water. The Company also takes seriously its commitment to help uplift the quality of life of marginalized communities by addressing their basic need for clean water. This is the 38 manila water 2011 sustainability report Company’s contribution to the attainment of factor. The Company ensures that community the environmental sustainability target of the members and LGU officials are engaged and Millennium Development Goals which seeks involved in every phase of the water project to half the proportion of population without to see to it that their concerns are properly access to clean water and proper sanitation. addressed. Over the years, the Company has found Moving forward, Manila Water will continue innovative solutions to some of the most to strengthen its partnership at the grassroots difficult political level and seek new and better ways to serve conditions to ensure that all its customers social, economic and its customers, with particular focus on the enjoy 24/7 water supply. Manila Water’s urban poor. partnership with the communities and local governments is certainly a key success 39 Photo shows members of the community participating in one of the public consultations conducted by Manila Water representatives in 2011. 40 Business Impact on the Communities neighboring areas. In 2011 alone, Manila Water conducted some 120 public consultations and nearly 300 meetings with LGU partners. Manila Water recognizes and upholds the The United Nations Declaration of the Human local government engagements as these Right to Water and Sanitation, which was strengthen its partnership with its grassroots passed in 2010 and states that “clean stakeholders. For their part, leaders and drinking water and sanitation are essential members of various communities and LGUs to the realization of all human rights.” are appreciative of the efforts of the Company Water is vital to every person’s survival, as and the Company continuously strives to improvements provide potable water to Metro Manila’s Water’s service. The local government of East Zone residents with as minimal risk Markina, for instance, gave Manila Water “The to the community as possible. Outstanding Marikenyo” award for having One such negative impact of the Company’s the most cooperative, efficient organization operation is the displacement of families in that commands respect and admiration, and the MWSS Right-of-Way (ROW) areas. To for its full support of Marikina’s advocacy minimize and address this problem, Manila of Water works closely with the MWSS as it is The Marikina local government also lauded the asset owner, along with other concerned Manila Water for its active participation in national government agencies and LGUs. community-building The Company assists in informing the public wastewater projects that have improved the about the serious risks that living in ROW health and sanitation of Marikina residents as areas presents. well as reduced the environmental pollution Through public consultations, meetings with at the Marikina River. local government units and local councils, as In the same manner, the Company endeavors well as community dialogues, Manila Water to maximize the positive impacts of its effectively assesses and mitigates any risks operations by supplying clean water to as involved in its operations in communities, many people as possible. Manila Water also including entering, operating and exiting, and contributes to the improvement in overall also deals with potential negative impacts its health and sanitation conditions in low-income operations may cause in communities and communities and informal settlements by manila water 2011 sustainability report Company they have promoting values community witnessed brought the about public-private efforts, and significant by Manila partnership. particularly Left: Managers from Manila Water’s Marikina BA headed by Christian Mhel Marcos (third from left) and former Area Business Manager May Quinto (fourth from left) show off the award given by their partners from the local government of Marikina. Right: Metro Manila East Zone customers enjoy clean drinking water from Manila Water. Melvin A. Cruz City Administrator, Antipolo City; and Former Administrator, Marikina City (1996-2005) When I was still in Marikina, there was clearly a problem i n t e r m s o f w at e r supply. There was water rationing until Manila Water came into the picture. The development was fast paced. Manila Water laid pipes and brought water directly to the households. In my own personal view, I believe that the projects conducted by Manila Water, especially those involving digging and laying pipes, have long term benefits for the community. Inconveniences related to this are temporary and needed. Manila Water always looks for ways to bring water even to far flung communities. Though the area seems impossible to be supplied with piped-in water, they find different approaches and technical solutions. Furthermore, Manila Water’s assistance after typhoon Ondoy was a big help to the community. This proves Manila Water’s social responsibility. Ziffred A. Ancheta Chairman, Barangay Tumana, Marikina City Prior to having water connection from Manila Water, the residents got their water from delivery tanks which cost PhP5 per pail. Despite this high price, the quality was still uncertain. Due to issues of land ownership, Manila Water was not able to implement a full blast piped-in water service connection for every household. However, the Company installed public faucets at strategic points along the main road in which the local government had legal rights. For two decades, we were used to the practice of ‘water tankering’ and having little to no water. Manila Water changed our perception and gave us hope. Manila Water is a partner in many ways. Besides water delivery, it has provided the community with desludging services. Manila Water made a great impact on our health and sanitation. clean water for healthy communities 41 ensuring that the quality of water it supplies is compliant with the Philippine National Standards for Drinking Water (PNSDW). This the Company does by regularly collecting water samples from 861 customers’ taps and testing the same in its world-class laboratory which has been ISO 9001, ISO 14001, and OSHAS 18000 certified, as well as ISO 17025 and Philippine Department of Health (DOH) accredited. Because of this, data from the DOH shows that the incidence of diarrhea in TPSB communities has significantly been reduced from nearly 20 per 1,000 population pre-TPSB to about 5 to date. While keeping the level and quality of its service high, Manila Water maintains its water rates within affordable limits as determined Manila Water’s Laboratory Services Department performs regular testing of water samples from strategic points in its service area to ensure compliance with PNSDW. by national statistics on average household income. Particularly for low-income customers, the Company brought down water costs from as high as PhP150 per cubic meter (as what residents used to pay for vended water with questionable quality) to PhP8 through its ‘lifeline’ rate for those consuming 10 cubic meters or less per month. Precita Cepe Vice Chairman, Bantay Bayan, Marikina City Treasurer, Olandes Phase 2 Home Owners Association Community Development Programs In keeping with the people’s right to clean water and sanitation, Manila Water lowered We were glad when Manila Water came to Olandes. Before, we used to wake up early to line up for water which we will use for the day. Now, we have water supply inside our house. Each family has its own water meter. We can now take a bath every day and wash our clothes without worrying if the water will be enough. We are also assured of the quality of the water. Honestly, we no longer buy bottled water because we drink directly from the tap. Aside from that, we have also cut down our water consumption expenses from PhP500 - when we were still buying water per container – to only PhP250. Manila Water is a big help to us. I salute Manila Water! (Translated) 42 manila water 2011 sustainability report its barriers to access through its ‘Tubig Para Sa Barangay’ (TPSB) program, enabling residents of marginalized communities to avail of the Company’s water services for considerably lower costs and less stringent requirements. This has resulted in financial and time savings for families as they no longer have to spend long hours waiting in line for deep well water. Since the first TPSB in 1998, more than 1.7 million people from low-income groups have enjoyed the benefits of having clean water from the tap anytime of the day. Because of the success of the TPSB, it has been hailed internationally as a good and sustainable model of water service delivery for the urban poor. In 2011, the Smithsonian Razel Espayos Lydia Gonzales Board Member Villa Classica Subdivision, Sumulong, Antipolo We have been using water from the deep well before Manila Water brought its services to our area. There were instances when we do not have water because the deep well was highly dependent on electricity. I remember spending PhP1,700 for water alone. When Manila Water started distributing water in Antipolo, we had sufficient and affordable water supply. We had strong water pressure and the quality is top-notch. I am definitely satisfied with Manila Water’s service. (Translated) President, Kapit Bisig Neighborhood Association, Sitio Panghulo, Taytay, Rizal Visitors from different countries take a look at the ‘Tubig Para Sa Barangay’ feature at the “Design with the Other 90% Cities” exhibit of the Smithsonian Institute in New York. Formerly, water was scarce in our area, there were only few families living in our community, there were hardly any government projects, and the roads were unpaved. We bought water at PhP2 per small container and we still had to boil the water for it to be suitable for drinking. Consequent to the installation of water service by Manila Water, more people began to reside in the community, business started growing in number, and the local government initiated road improvements. Water became cheaper and water-borne diseases were reduced. I would like to say a million thanks to Manila Water for bringing water to us! (Translated) clean water for healthy communities 43 Manila Water representatives led by Sustainable Development Department Head Carla Kim (center) accept the 2011 IWA PIADevelopment Award on behalf of the Company. Institute in New York showcased the TPSB in its exhibit “Design with the Other 90% Cities” as one of the unique and commendable Vergilio dela Cruz President, Dakila Association for Water Supply Inc. PO Leader, Mandaluyong A lot has changed since Manila Water entered our community. Previously, there was poor hygiene among the community members and our surroundings were unclean due to lack of water. At present, we have a cleaner neighborhood and the health condition of the people has improved. Dakila Association for Water Supply Inc. is a People’s Organization (PO) that manages the mother meter in the community. Jobs were created when Manila Water came. We trained and employed meter readers and workers who assisted in pipe laying activities. We are also beneficiaries of the Company’s Kabuhayan Para sa Barangay Program (KPSB) or livelihood program. Under the KPSB, the Amihan Multipurpose Cooperative was aided by Manila Water and trained to fabricate and sell board ups and bollards, which created income for the community. Our lives changed because of all the assistance given to us by Manila Water. If we are going to rate Manila Water from 1 to 10, 10 being the highest, we will be rating them a perfect 10. Manila Water has the complete package, from its good water supply delivery to its excellent customer service. The Welfareville community is very pleased with Manila Water. (Translated) 44 manila water 2011 sustainability report programs and solutions from across the globe that has addressed complex issues arising from the unprecedented increase in informal settlements in emerging and developing economies. Manila Water was the only water and wastewater service provider among 60 projects from 22 countries that were chosen by the Smithsonian Cooper-Hewitt Design Museum. The TPSB was also recognized by the International Water Association (IWA) through its 2011 Project Innovation Awards – Development. Aside from its customer benefits, the TPSB was found worthy of an Honour Award for the Drinking Water Software Category because of its effective community participatory approach. The TPSB bested hundreds of other programs from different companies around the world that focused only on the technical or engineering aspect of water service delivery. Additionally, the Company’s ‘Lingap’ programs for public service institutions have brought safe drinking water to the larger communities with the installation of drinking fountains and wash areas and the rectification of after-the-meter pipes in schools, orphanages, markets, city jails, and hospitals. Through the Lingap programs, 1.5 million people from low-income families have been assured of potable water that is available in more than 300 important institutions in Metro Manila’s East Zone 24 hours a day. Mr. Ferdinand M. Dela Cruz, Group Director of EZBO and CSAG, shares a toast with Manila Water’s partners during a simple ceremony that celebrated the completion of a Lingap Health Center program. Liza Lucero Al Lim Sitio Chairman, Baybay Sapa Cainta, Rizal I was a deep well user before. The water I was using has not been checked for quality by DOH and the clothes I wash became discolored. Today, with the water service connection by Manila Water, I can drink directly from the faucet and the clothes I wash remain clean and white. Likewise noteworthy are their diligent and hardworking employees. They were there when we needed support with regard to our water supply and connection. For me, Manila Water was heaven sent to Baybay Sapa. Manila Water’s service is always there – when we take a bath, when we cook, etc. Thank you for coming to our lives. (Translated) Block Leader, Angel Santos Barangay Tumana, Marikina We knew it was difficult for Manila Water to come into the community because of issues on land ownership. Nonetheless, after series of meetings and discussions with both the local government and the community, Manila Water was able to implement its Tubig Para sa Barangay Program (TPSB) in 2011. Initially, I was spending PhP65 every other day for water bought from delivery trucks. With Manila Water, our expense was significantly reduced to only about PhP135 per month. Our savings can now be spent on other important items such as food. We thank Manila Water for being our partner. They have improved our lives by providing affordable water to the community. (Translated) clean water for healthy communities 45 Customer-Centric Service Manila Water has always taken a proactive approach to customer service and has gone beyond the usual definition that customer service is only about efficient and effective response to customer concerns. Recently, A Manila Water employee responds to a customer’s query about her water bill. the Company has started involving the whole organization to move towards a more customer-centric mindset in its operations. This is done by identifying key customer segments to understand them better, redefining performance measures in terms of customer service, and aligning Public Assessment of water services (PAWS) the organizational structure to customer requirements. 4% These initiatives, among others, have resulted in very good customer satisfaction as evidenced by the results of two major surveys. The Company scored high 96% good 100% 100% 100% in a pilot study conducted by the UP National 100% Engineering Center and commissioned by the Department of Environment and Natural 72% Resources and the MWSS Regulatory Office for water concessionaires in Metro Manila. very good Called the Public Assessment of Sewerage 28% 2003 and Sanitation Services (PASS), the study 2006 2008 2009 2010 2011 188 306 307 338 339 340 communities communities communities communities communities communities surveyed several barangays being serviced by Manila Water. For sewerage survey, 182 respondents from 6 barangays gave Source: PAWS Performance Ratings UP National Engineering Center Manila Water an overall rating of VG (very Note: “Very Good” is the highest possible rating a respondent can give. good), while for the sanitation survey, 333 respondents from 10 barangays also gave the Company an overall rating of VG. The main objective of the study is to develop a set of performance indicators and to implement a performance rating system for sewerage and sanitation services. Manila Water has also consistently received a 100% customer satisfaction rating in the MWSS-commissioned Public Assessment of Water Services (PAWS) covering over 300 barangays in the Company’s service area. 46 manila water 2011 sustainability report Students of Kapitan Moy Elementary School enjoy the benefits of having clean, potable water through Manila Water’s ‘Lingap Eskwela’ program. Jaime Co, Jr. Chairman, Barangay 776 Zone 85, District 5 Sta. Ana, Manila Marciana R. De Guzman Principal, Kapitan Moy Elementary School, Marikina City Water is precious; it sustains life. Safe water, which is provided to us through the Manila Water’s Lingap Eskwela Program, is one of the many blessing we are grateful for. Since the provision of the drinking and hand washing facilities, there had been no incidence of water-borne diseases among the school children and the whole school community. Manila Water regularly monitored the safety of the water, with the City Health Office doing the same routine. The company is serious in its Corporate Social Responsibility. We are fortunate to be one of the select recipients. We hope that Manila Water will continue the Lingap Program. Barangay 776 is a beneficiary of two Lingap projects – Lingap Barangay and Lingap Day Care Center. Manila Water has installed a wash area for the students enrolled in the Day Care Center, as well as a drinking fountain and a toilet in the Health Center. These facilities have helped the community in various ways. Before, the people who go to the Health Center automatically brought a pail of water for a simple tooth extraction. Furthermore, we did not have a toilet to use, so many relieved themselves anywhere and a few are forced to go back home. With the toilet and the drinking fountain installed, the Health Center now has a source of potable water for the dental procedures and our vision of keeping our surroundings clean was realized. Sanitation in the community has also improved. Even after the projects, Manila Water conducts regular visits through its Territory Manager to check how they can further assist the community. Other barangays envy Barangay 776 because of these facilities. We tell them that Manila Water has helped us and if they have their own water connection, it is possible for them be a Lingap beneficiary as well. (Translated) clean water for healthy communities 47 Participation in Public Policy Development Manila Water actively participates in public policy development with regard to environmental issues, groundwater pr ote ction , an d wate r s e ctor refo rm. However, the Company is careful to maintain its political neutrality with no affiliations or financial support given to any political party or individual. While the Company partners with LGUs and NGAs for its social programs, the main beneficiaries of such will always be the communities, and not political groups. Responsible Advertising, Marketing and Communications Manila Water adheres to the standards of the Philippine Association of National Advertisers (PANA) for advertising and marketing communication standards. Manila Water endeavors to provide all its customers with 24/7 supply of drinking water. Though the Company has little need for a comprehensive marketing campaign, having a captured market, it still adheres to the principle “truth in advertising,” transparency, and balanced media. The Company also abides by the standards of the Kapisanan ng Erlinda Baylan Former President, Isla Association, San Juan; and TPSB Beneficiary mga Brodkaster ng Pilipinas (KBP) in relation to its media approaches. Meanwhile, Manila Water is currently drafting a formal policy on sponsorships to ensure that these are strategic to its business requirements. Manila Water has never faltered in giving excellent customer service. Whenever we call to report any leak, Manila Water immediately responds and takes action. Its employees have consistently delivered outstanding service to its clients. We are grateful to Manila Water for providing us with reliable water supply. We are now confident and assured of clean potable water. Thank you for taking care of us, Manila Water! (Translated) 48 manila water 2011 sustainability report The Company observes strict compliance with other national standards and regulations covering marketing communications, in clu din g adve r tisin g, pr omo ti o n, and sponsorship, and as a result, there have been no reported incidents of non-compliance on any level. Manila Water also values the privacy of its customers and the information they provide and share. Because of this, the Company has received no complaints regarding breaches of customer privacy and loss of customer data. Engr. Roldan Araga Assistant Vice President, Engineering and Maintenance Department, St. Luke’s Medical Center Ilven Samonte Head, Project and Property Management Department, United Laboratories Inc. (Unilab) I can attest to the quality of water supplied by Manila Water because we conduct our own water testing in Unilab to validate and confirm that the water we use passes the standards. At first, we had hesitations if Manila Water could supply our needed water requirement but so far, they have never let us down. We’ve never had water shortages since we converted from deep well to 100% piped-in supply from Manila Water. As we know, water is essential to human survival and Manila Water has always been quick to act on our requests and concerns with regard to water supply. They never cease to provide personalized and friendly service to Unilab. Manila Water supplies Metro Manila East Zone families with clean water for drinking and other household uses. St. Luke’s Medical Center is one of the biggest healthcare facilities in the country and water is very vital to our operations and the continual care of our patients. Water has been our resource to do our laundry, cleaning, and all other medical procedures. From using deep well, we have recently moved to 100% water supplied by Manila Water. I am proud to say that we were able to comply with the Quezon City ordinance regulating water extraction through deep wells with the help of Manila Water. With this transition, water quality is now guaranteed and is based on drinking standards, and because of this, we have actually reduced our operating costs in terms of chemical usage for water testing. Additionally, the company has also granted the hospital special rates when they knew we were catering to around 300 to 400 indigent patients from Quezon City. Manila Water also provided us with other services such as desludging and leak detection. These are likewise important to the hospital. We are hoping that this partnership would continue – the quality they promised, the appropriate water pressure, the reliability and provision of other related services. clean water for healthy communities 49 Commitment to Environmental Stewardship Management Approach As the leading water and wastewater company in the Philippines, Manila Water recognizes the important role it plays in keeping the water environment safe and in ensuring the sustainability of water resources for future generations. It addresses environmental issues on a holistic manner; that is, by assessing and mitigating the risks in every stage of the water life cycle – protecting watersheds, using raw water sources wisely, operating efficiently, ensuring efficient water distribution, and 50 manila water 2011 sustainability report treating domestic wastewater to abate customers. In view of this, Manila Water further degradation of major river systems pursues a more robust Climate Change in Metro Manila. adaptation Apart from ensuring that its water and partnerships wastewater operations comply with national tailor-fitting the learnings from consequent environmental regulations, it seeks to exchanges to the unique conditions in Metro upgrade its facilities to world-class status by Manila’s East Zone. following the ISO standards on quality and Manila Water extends this commitment to environmental management systems, as well environmental protection and sustainability as occupational health and safety. to its stakeholders - by urging its contractors Moreover, the Company recognizes that to join the Green Philippine Islands of Climate Change needs to be considered Sustainability for long-term sustainability as well as for educating members of the public about the maintaining current levels of service to water trail through the ‘Lakbayan’ program. program with through industry (GPIoS) strategic experts initiative, and and by 51 Water Abstraction by Source (in billion liters) Chemicals Usage Ground water (deep wells) by Type of Operation nb ys ou r ce 7.65 stra wa te r ab 469.55 c t io Raw Water (Angat dam) Eduardo Janairo Director, Center for Health and Development, Department of Health National Capital Region Manila Water’s Lakbayan is really awesome. It’s really amazing thinking that it’s learning a lot about where water comes from and how it becomes clean. The history of water is something that everyone should know so that they would also know that they have to go back to what we used to do, drinking direct from the faucet. The whole information that was given to us will strengthen our own advocacy to campaign for people to go back to the way they used to do things, like drinking straight from the faucet. I really hope our barangay captains will learn from this and get into the Lakbayan also so that they themselves can teach their communities that the best water is what comes out of their faucets handled by Manila Water. For the people here at Manila Water, may the force be with you. It was so amazing seeing professionals and experts doing a single advocacy or concern, which is water. That water is actually our life, and you’re so much concerned with that. And being concerned gives more progress, much development, with just a single concern which is water. And for you here working, please go on. And with this Laboratory, I am looking forward to a more aggressive partnership and more opportunity for people to work on the cleanliness, the safety and clarity of our water. You have the best workforce here. 52 manila water 2011 sustainability report Water Supply 6,661 metric tons of Chlorine, Alum and Polymer Wastewater 799,758 liters of Chlorine 24,344 kilograms of Polymer for Wastewater The Water Life Cycle In every stage of the Water Life Cycle, Manila Water takes great care to ensure that the water that comes out of the faucets of its customers is clean and safe. The Company’s commitment begins when the raw water is first sourced from Angat Dam and travels to the Ipo Dam and La Mesa Dam for treatment at the Balara Treatment Plant. Quality testing is conducted before the water is distributed to the different pumping stations and reservoirs for release to customers. To complete the cycle, water is disposed by customers to a sewage treatment plant before it is discharged to rivers, or septage from septic tanks are hauled to a septage treatment plant for eventual use as soil conditioner for farmlands affected by volcanic ash (lahar). ANGAT DAM IPO DAM discharge to rivers The Water Life Cycle LA MESA DAM balara treatment plant effluent reuse biosolids application pumping station septage treatment plant sewage treatment plant pumping station customers laboratory commitment to environmental stewardship 53 A Lakbayan participant signs his name on the Lakbayan Center’s wall after learning about and experiencing the water trail. Throughout this life cycle, Manila Water 54 Caroline Grace M. Pedragosa considers the health and safety impacts Manager, Center for Corporate Citizenship, Philippine Business for Social Progress (PBSP) of 15 of its facilities now have Integrated Manila Water is genuinely committed in fulfilling its social and environmental responsibilities. Manila Water quickly responded to our call for collaborative action. As a member of the Business and the Millennium Development Goals (MDG) Environment Cluster, it has shared its resources and expertise in enhancing the ‘Water for Life’ (watershed rehabilitation) Program of the Cluster. The Water Trail / Lakbayan conducted for the Cluster made us appreciate the whole water cycle – from the raw water source to the wastewater treatment. It provided us a clearer direction and gave us a deeper appreciation of the value of water. I hope that Manila Water will continue to educate more people through their Lakbayan Program and influence more companies to embrace responsible business practices. complied with three international standards – manila water 2011 sustainability report at the facility level, and as such, a total Management System (IMS). In 2011, these facilities earned their third ISO certification which confirms their status as having ISO 9001 (quality management system), ISO 14001 (environmental management system) and OSHAS 18001 (occupational health and safety). Because of this, no non-compliance with or violations of relevant government regulations such as spills has been reported. The Company also realizes the importance of educating its stakeholders on important water and environmental issues. For over five years now, Manila Water has promoted awareness and understanding of the processes involved in converting raw water into potable water through its Lakbayan program, where stakeholders are taken on educational field trips to water and wastewater facilities to see for themselves the treatment process, and eventually appreciate the need to use water wisely and learn the importance of proper wastewater management. Nearly 650 Manila Water Operations Group Director Geodino V. Carpio explains to some Lakbayan participants how raw water is cleaned in the Balara Treatment Plant. Jesser John B. Alvarez batches of Lakbayan tours have already been carried out, with some 21,000 participants from national and local government offices, community partners, non-government organizations, schools, private companies and other special / interest groups learning more about the water trail. Raw Water Protection and Watershed Management Manila Water recognizes the importance of ensuring sustainable water sources for both its current and future customers. Hence, it carries out a strategic program to protect the three watersheds that are critical to its service delivery – Ipo, La Mesa and Upper Marikina. Second Year Student, Bachelor of Technical Teacher Education, Marikina Polytechnic College The day I went to attend the Lakbayan, I was amazed at how water from Angat that is not potable is transformed to clean, drinking water and delivered straight to our homes. I was also amazed at learning the story of Pat Tubig, where the seven steps of treatment were discussed. I learned that wastewater is not discarded but treated before it is released so it would not pollute our rivers. I learned that nothing is wasted; everything, even the sludge, can be recycled. I want to invite my friends to go on another Lakbayan tour and share what I learned from Manila Water. (Translated) commitment to environmental stewardship 55 Watershed Ipo Watershed La Mesa Watershed Description Status Covers an area of 7,236 hectares based on physical delineation or 6,600 ha based on Proclamation 391. It is approximately 65 kilometers north of Metro Manila. Based on 2009 satellite imagery, the vegetative cover of Ipo Watershed is predominantly grassland covering about 40% of the watershed area. Protected Covers 2,659 hectares with 2,292 hectares of forest land and 367 hectares of reservoir/lake Protected Biodiversity Value • • • 5 endangered fauna species: Celestial Monarch, White-fronted Tit, Spotted Imperial Pigeon, Philippine Kingfisher and Philippine Hawk-Eagle 7 species of dipterocarps Varied species of pandan, palms, vines, grasses and other shrubs/creepers Flora • A total of 520 plant species exist • 10 are vulnerable, 7 are endangered, and 4 are critically endangered according to International Union for Conservation of Nature (IUCN) Category Fauna • 117 species of vertebrate wildlife • 90 birds species* (Osprey, highlight species which is an uncommon migrant species listed under Convention on International Trade in Endangered Species (CITES)) • 24 are endemic, 53 are residents, 11 migrants and 1 migrant/resident species • 5 are vulnerable as listed in CITES • 13 mollusks species • 3 species of amphibians • 6 species of mammals including Monitor Lizard (Varanus salvator) • 4 bat species • One rodent species • 8 orders of invertebrate fauna • 31 genera of microfungi • 5 genera of endomycorrhizal fungi Upper Marikina Watershed 56 Covers an area Protected of 29,505.8 hectares with 4 subwatersheds, namely: Bosoboso, Tayabasan, Montalban and Wawa. It encompasses Antipolo City, and the municipalities of Rodriguez, San Mateo, Tanay and Baras in the Province of Rizal. Recently, Presidential Proclamation No. 296 dated November 2011 declared this watershed as the Upper Marikina River Basin Protected Landscape manila water 2011 sustainability report Terrestrial Vegetation • A total of 331 species belonging to 101 families of angiosperms, pteridophytes, and fern allies • From the total recorded plant species, 49 species are Philippine endemics; 6 species are Luzon Island endemics • 6 plant species of new range extensions for taxa previously not known to occur in Rizal Province • 38 threatened plant species Terrestrial Wildlife • A total of 112 species of terrestrial vertebrates • 23 species of amphibians and reptiles • 77 species of birds • 12 species of mammals • 3 undetermined species of Lizard (Spenomorphus sp.), Snake (Lycodon sp.) and Forest mouse (Apomys sp.) • Endemicity being moderately high at 43% • 5 species are classified as threatened under the IYCN Red List 2010 and/or DENR DAO 2004-15 (Wildlife Protection and Conservation Act) Ipo Watershed hectares has already been reforested in Ipo In line with the thrust of the MWSS to Watershed through this partnership. rehabilitate the entire Ipo Watershed in a Manila Water’s partners from the University period of 5 years, a total of 450 hectares of denuded areas were reforested and Technological Institute of the Philippines, maintenance works for the 110-hectare UP Circle of Engineering Students (Crest), area that was rehabilitated in 2010 were Philippine Women’s University, Don Bosco undertaken. Said activities were carried out and Rotary Club of San Francisco Del Monte by Bantay Kalikasan and the six People’s also conducted tree nurturing projects to Organizations composed of Dumagats, an improve the biodiversity of flora and fauna indigenous tribe, and local residents through in the watershed and reduce siltation and the assistance of and the funds provided by flooding in the area. Community outreach Manila Water and the other concessionaire, activities were also done to care for the Maynilad. For the remaining years of this families residing in the area. project, the target is to reforest 900 hectares Since the Ipo Watershed is also home to every year. the Dumagats, Manila Water works closely Meanwhile, under the Company’s Adopt- with them to ensure the forest’s protection. a-Watershed Program, Manila Water and The Company strictly follows the Indigenous its partner organizations have planted 3.28 Peoples’ Rights Act (IPRA), and at no time hectares or approximately 1,390 seedlings in 2011 were any violations of the IPRA ever within their adopted sites. A total area of 132 reported. the Philippines (UP) Photo shows Manila Water volunteers along with partners from different organizations in one of the tree-planting activities undertaken by the Company as part of its watershed management program. Mountaineers, commitment to environmental stewardship 57 Liesl Lim La Mesa Watershed SMART Consultant, Philippine Disaster Recovery Foundation (PDRF) The protection and management of the La Mesa Watershed were continued by Bantay Kalikasan through the support of the MWSS, Manila Water and Maynilad. In line with the Manila Water heeded the call of the private sector to work together towards achieving the objective of recovery and rehabilitation after the onslaught of typhoons Ondoy, Pepeng and Santi. It is a major donor and proponent in the Marikina Watershed restoration. Even without PDRF, Manila Water, through its Memorandum of Agreement with DENR, has spearheaded the preparation of a Comprehensive Marikina Watershed Management Plan, and one of its aims is to provide strategies to reduce the risk and mitigate the impact of another typhoon Ondoy, which only validates its long-term commitment to the cause. It is truly commendable that Manila Water is not only dedicated on the environmental front, but was likewise willing to extend its support to the economic and social aspects of the Marikina Watershed Initiative as well, through the livelihood and capacity building programs it supported. Manila Water shared its funding, technical expertise and engaged its employees for the restoration of the Marikina Watershed. Manila Water certainly walked its talk. 58 manila water 2011 sustainability report National Greening Program of the DENR, Manila Water planted more than 400 trees in the La Mesa Watershed, specifically along the access road leading to the intake of the Company’s Rodriguez Water Treatment Plant. Also, as part of its watershed protection initiatives, Manila Water will undertake the repair of approximately 1 kilometer breaches in the perimeter fence. Upper Marikina Watershed Manila Water, as a member of the Philippine Disaster and Recovery Foundation (PDRF), actively participated in the major activities of the Foundation. In 2011, PDRF recognized the support of Manila Water to the Marikina Watershed initiatives, citing that the Company had the biggest contribution from the private sector to rehabilitate said watershed. Pursuant to the Memorandum of Agreement with DENR and the Protected Area Management Board (PAMB) of the Marikina Watershed Reservation, Manila Water delivered its key outputs, namely: (1) Inception Report; (2) Watershed Management Framework Plan; (3) Report The La Mesa dam is a critical component of the water life cycle that provides 24/7 supply to Metro Manila East Zone customers. on Field Application and Capacity Building; and (4) Draft Comprehensive Watershed Management Plan. A series of Stakeholders Consultative and Disclosure meetings on the Comprehensive Watershed Management Plan was conducted prior to the finalization of the plan. A Manila Water desludging truck hauls septage from a household’s septic tank. In addition, Manila Water, through its partner implementor, Fostering People’s Education, Empowerment and Enterprise, Inc. (FPE3) Through this, the Comany helped improve reforested 385 hectares of denuded areas of the quality of major water bodies in Metro the Tayabasan and Bosoboso subwatersheds Manila. In addition, Manila Water ensured that in 2011. Since 2010, a total of 415 hectares the wastewater effluent from its treatment have been planted with 259,675 indigenous facilities consistently complied with DENR trees at barangays Calawis and San Jose standards. in Antipolo City. Under this project, eight Manila Water also continued the People’s host implementation of the 3-River Master Plan that communities, as well as more than 1,600 will provide 100% treatment to wastewater volunteers from 23 government, civil society, discharging to the major river systems in the academic and private sector organizations East Zone – Pasig San Juan and Marikina – were engaged to undertake actual seedling and will ultimately affect the clean-up and propagation and field planting. Out of the revival of Manila Bay and Laguna Lake. target 500 hectares areas to be reforested, Because of its outstanding performance and there are only 85 hectares remaining which contribution to wastewater management in will be planted in 2012. Maintenance of these Metro Manila, the Laguna Lake Development trees will also be undertaken by Manila Water Authority (LLDA) gave nine Blue Awards from 2012 up to 2014. to Manila Water’s Pollution Control Officers Organizations from the (PCOs) during the 5th Cycle of LLDA’s Public Water Distribution Disclosure Program. Said awards were in recognition of the Company’s full compliance Manila Water made its water supply operations with the regulatory requirements of the DENR more efficient such that less physical losses and LLDA, as well as for its well-maintained are present and more people have 24-hour wastewater treatment facilities. water service. In 2011, the Company sustained its Non-Revenue Water (NRW) reduction Sanitation and Septage Management efforts and the level of systems losses at Consistent with the provisions of the 11.2%, and consequently was able to deliver Philippine Sanitation Code, Manila Water 411.6 continued to provide septic tank desludging million cubic meters of potable water to its customer base. services to customers who are not yet connected to its sewer network. In 2011, Wastewater Treatment Manila Water desludged a total of 52,147 septic tanks which benefited 178,258 Sewerage households, and translated into 160,799 cubic The 36 Sewage Treatment Plants (STPs) of meters of septage. Manila Water treated 70.13 mld of wastewater, Meanwhile, the Company generated a total and in the process removed a total of 3,676 of 20,443 cubic meters of biosolids as a by- tons of Biochemical Oxygen Demand (BOD). product of the septage treatment process. commitment to environmental stewardship 59 v e h i c les (i n l i te rs) Non-CO2 Air Emissions of Vehicles Hazardous Wastes Disposed and Treated (in tons) (in liters) on - C O em is 2 n s io n s mercury and mercuric compounds of Carbon Monoxide (CO) 8.35 401.25 Nitrogen Oxides (NOx) 2.57 other wastes with inorganic chemicals 88.3 4.75 16.7 0.43 0.41 2.0 1.8 9.0 other inorganic acids Particular Matter (PM) non-halogenated organic solvents Hydrocarbons (HC) hydrochloric acid others* organic acids ** Includes Sulfuric Acid, Lead Compounds, Reducing Agents, and Halogenated Organic Solvents Manila Water made good use of the biosolids by its Laboratory Services Department and by composting it and transporting the same ensured that they were properly hauled to lahar-laden areas where it was applied as and treated by DENR-accredited service fertilizer and soil conditioner. providers. Compliance with Other Environmental Regulations Republic Act (RA) 9003 In support of the government’s drive for a more effective solid waste management Clean Air Act under RA 9003, Manila Water made sure to As a responsible business firm, Manila Water properly dispose of the other by-products of does not limit its environmental compliance its operations, both in facilities and offices. For to water and wastewater regulations. For instance, the Company responsibly disposed instance, it makes sure to use only materials of 1,105 cubic meters of grits and screenings and substances for air conditioning units and generated by its wastewater treatment plants chillers that are consistent with the guidelines by giving these to a DENR-accredited waste of the Philippine Clean Air Act and do not collector. have ozone depletion potential. In the same manner, more than 108 tons of As for its service vehicles, Manila Water assorted scrap metal and assorted recyclables continued to monitor and keep to a minimum such as PET bottles, paper, cartons and level its non-CO2 air emissions so as not to aluminium cans, as well as 269 pieces of used add to the serious problem of air pollution in tires were sold to recyclers and junkshops. Metro Manila. In 2011, these emissions totalled Additionally, the Company used recycled 11.75 tons. materials in the form of 2,900 pieces of jumbo tissue rolls made of recycled pulp and 60 Republic Act (RA) 6969 ink cartridges in some of its printers. These In compliance with RA 6969, Manila Water initiatives yielded nearly PhP17.5 million worth monitored the hazardous wastes produced of savings for Manila Water. manila water 2011 sustainability report Manila Water monitors the GHG emissions of its water and wastewater treatment facilities to minimize the increase in its carbon footprint. 2011 Carbon Footprint (in tons CO2 (e)) scope 3 200 11 C a rb scope 1 ) (e) O2 sC to n ply es in i cl s u p o r t( h f r e e rin s v at ets l otp de r w r s ve Fo clu s fo rato . tra on 1 in set ne 6) nal p e r g e ( 1 3 t io . co ato 7), ns na 0) scope 2 53,101 Total 56,976 3,675 Notes: 1. Scope 1 includes direct emissions from vehicles (1,152), generator sets for water supply operations (2,387), generator sets for wastewater operations (136). 2. Scope 2 includes indirect emissions from electricity used. 3. Scope 3 includes international travel (150) and domestic travel (50). commitment to environmental stewardship 61 Response to Climate Change Program (P-O-P) which saved an additional Manila Water’s response to the risks and PhP3.328 million. To further reduce opportunities brought about by Climate greenhouse gas emissions, Manila Water Change, which was formalized through a has also begun using Variable Frequency Climate Change Policy in 2007, predates Drive (VFD) and soft-starters in its pumps RA 9729 (Climate Change Act of 2009) and blowers. and is aligned with the National Framework Despite expansion of operations in 2011, Strategy on Climate Change (2010 – 2022). the Company managed to minimize the The Company works closely with various corresponding increase in carbon emissions, stakeholders to help the government attain which registered only a slight change from its vision of making the Philippines a climate- 55,361 tons in 2010 to 56,976 in 2011. resilient country. Climate Change Adaptation 62 Climate Change Mitigation Manila Water implemented a number of One of Manila Water’s Climate Change activities and programs as part of its Climate mitigation strategies is Greenhouse Gas Change adaptation efforts. One such program accounting and monitoring, which covers is fuel (scope 1), electricity consumption (scope Manila Water incorporates Climate Change 2) and business travels (scope 3). It is one adaptation in the design of its new facilities. of the pioneer companies to implement the Manila Water also considers the concept of Philippine Greenhouse Gas Accounting and green building to its facility designs to have a Reporting Program (PhilGARP). more efficient use of resources. Manila Water saw its total fuel consumption, Moreover, Manila Water recognizes that, being which is the combined consumption of its a critical lifeline during disasters, it needs to fleet, generator sets and other equipment, ensure water security and water reliability in climate-proofing its assets in which decrease significantly from 5,500 tons CO2 cases of extreme weather conditions such (e) in 2010 to 3,675 tons CO2 (e) in 2011. as drought, strong typhoons and flooding However, the total amount of electricity brought about by Climate Change. it consumed, increased by 6.9% mainly To ensure continuity of its business due to the expansion of its services and operations, the Company organized a operation of new facilities. To address this, Business Continuity Team (BCT) to enable the Company undertook several energy quick response in cases of emergency. efficiency programs to properly manage its Geographic “quadrants” in Manila’s East Zone energy use. were established based on a disaster impact The Company negotiated with Meralco, its reduction study which assumes key lifelines electric power distributor, to implement of the city to be unavailable. Each quadrant the Guaranteed Minimum Billing Demand has its own complete contingency resources, (GMBD) which adjusted the minimum incorporating the specific locations and requirement for plant operations, thereby capabilities of each Manila Water manager to virtually making it similar to actual kilowatt respond to any given situation. The Company demand. This initiative realized savings of also continued to undertake unannounced PhP535,000. The Company also enrolled company-wide drills that involved other five more plants in Meralco’s Peak-Off-Peak government support services. manila water 2011 sustainability report expenditures on key environmental programs (in million pesos) To further strengthen its Climate Change initiatives, Manila Water, along with the MWSS and Maynilad, signed up to a USAIDsponsored Waterlinks project called “Water Operator Partnership on Planning for Climate Change Adaptation in the Philippines”. The Palm Beach Water Utility of Florida and the National Center for Atmospheric Research based in Colorado served as the mentors wastewater projects septage and sludge management 1,380 58 153 0.073 wastewater operations waste treatment and disposal and shared practical experience on the use of Climate Change adaptation tools such as the Water Evaluation and Planning (WEAP) model and new risk management tools, including decision support models of water watershed management 77 Total 1,668 systems and decision science methods such as scenario analysis, multi-criteria decision analysis (MCDA). Select planning managers of Manila Water underwent said training program with the intention of adopting their learnings as they mainstream Climate Change adaptation into the Company’s capital investment and operational plans. Greening the Supply Chain Manila Water expanded its efforts by recruiting its vendors to the Green Philippine Robby Bataclan, Arlyn Catayas and Michael Brian Gonzalez Roberfran Autoshop Islands of Sustainability (GPIoS). Thirteen (13) companies in Manila Water’s supply chain now participate in the GPIoS program where they are provided free workshops and technical assistance on cleaner production, energy efficiency and other environmental tools to enable them to realize economic profit while simultaneously increasing resource efficiency and minimizing environmental impact. In addition, Manila Water has included environmental, health and safety requirements in the accreditation of its supply chain. Manila Water invited us to participate in the environmental initiative called the Green Philippines Islands of Sustainability or GPIoS, as part of their Greening the Supply Chain Program. We were given free workshops on energy efficiency and other environmental tools. The GPIoS has provided suggestions and ideas on how we can conserve electricity and use water wisely. They have conducted visits to identify environmental practices we can implement in our operations. The program has likewise helped us look at our waste management, especially on the disposal of hazardous wastes. Roberfran has always been searching for ways to contribute to environmental sustainability and we are glad that Manila Water included us in these programs. (Partly translated) commitment to environmental stewardship 63 Responsible Business Practices that Drive Economic Growth Management Approach Manila Water makes good use of its position as the dominant water and wastewater service provider in the Philippines to help spur local and national economic growth. It continues to improve the water and wastewater infrastructure in the 23 cities and municipalities under its concession area to make these more liveable and attractive to both local and foreign investors. In doing 64 manila water 2011 sustainability report this, however, the Company does not only an extension of the Company, Manila Water focus on commercial areas and business ensures that these organizations uphold the districts. Instead, it endeavors to drive same high standards that it espouses. The economic growth in the entire East Zone of Company likewise affords them with the Metro Manila, which, in turn, will pump-prime necessary trainings and skills upgrading to the national economy. keep up with its growing operations, as well In the same manner, Manila Water supports as the technological advancements that are small- and medium-scale enterprises, as well as relevant to design and construction, pipe- community-based cooperatives by providing laying and other civil works. jobs and livelihood opportunities that are aligned with its business requirements. Being 65 The Company prides itself in its relentless adherence to policies on transparency and good governance in all its contracting practices. Investments for Service Improvement In 2011, Manila Water spent a total of PhP9,184 Neomie Recio million to further improve the level of Director, Traffic Engineering Center, Metro Manila Development Authority (MMDA) service enjoyed by Metro Manila East Zone customers. Its capital expenditures were anchored on two key components, namely, reliability and expansion. The Company’s Reliability Program aimed at ensuring reliable Manila Water is quick to act and respond to our traffic issues. Their communication line is consistently open to our requests and concerns. Although the traffic impact of the road works and projects of Manila Water has always been our main concern, they are always there to assist us in improving the traffic situation. The Company’s commitment is manifested through its recent hiring of a Traffic Manager to assist MMDA in the management of traffic in areas where the Company’s projects are being implemented. This will greatly help in the planning of alternate routes and application of strategies to reduce the traffic impact of the Company’s projects. We support Manila Water’s projects because we believe that these will eventually lead to better and improved water service for all. 66 manila water 2011 sustainability report and 24/7 services for its current customers, even amidst natural calamities and disasters. On the other hand, its Expansion Program sought to make water and wastewater services available to more people by laying new pipes and putting up new facilities and the required supporting infrastructure. To create more impact, the Company made sure that its service improvement projects are aligned with the development plans of the cities and municipalities in its concession areas. In the same manner, to minimize the temporary negative impacts of the projects it undertakes, it complied with the regulations exacted by concerned national agencies. By implementing such projects, Manila Water contributes to national development and economic growth. Support to SMEs However, as of now, all contractors must strictly comply with the Company’s To help drive local economies, Manila Water Vendor Management Policies and Standard taps small and medium enterprises (SMEs) Contracting Procedures and adhere to the and lets them grow with the Company through Manila Water Vendor’s Code of Conduct. sustainable job generation in connection with The Vendor’s Code of Conduct states that its civil works. To provide equal opportunities all accredited vendors should comply with for SMEs in the Company’s supply chain, Philippine tax laws, statutory fund laws Manila Water includes them in the solicitation ( s o c i a l security, health insurance, and of proposals and quotation, provided they other benefits for their employees), and pass a special accreditation process. Also, the Philippine Labor Code. It has a specific a minimum allotment equivalent to 20% of provision on child labor, stating that all the approved budget may be contracted to vendors s h o u l d a d h e r e t o a p p l i c a b l e an SME, and the buyer shall be authorized international and national labor laws and to negotiate with the SME, using the lowest standards, including protecting children from bid price or the prevailing market prices as exploitation. benchmark. Moreover, the Company provides The Company also prides itself in its relentless SMEs with additional privileges such as tax adherence to policies on transparency exemption based on tax privileges granted and good governance in all its contracting under relevant laws, performance surety practices. It abides by Vendor Accreditation bond, shorter terms of payment and loan Policies in selecting and accrediting assistance. contractors. It conducts regular performance In addition, Manila Water requires that evaluation for service providers according to imported materials are coursed through local its Service Providers Performance Appraisal distributors not only because of the need to Policy. Because of its commitment to ensure after sales support, but also in order responsible business practices, Manila Water to help small businesses . is proud to say that it has never had a case of Manila Water is currently working on human a contract disapproval due to human rights rights-specific screening for contractors. violation. Manila Water continues to improve the water and wastewater infrastructure to extend its services to the farthest and hardto-reach areas in the Metro Manila East Zone. responsible business practices that drive economic growth 67 Employees of SMEs benefit from Manila Water’s capital programs. Gloria Quintan Vice President for Finance, R.O. Quintan Builders We have been working with Manila Water since 1997 as Lopez Plumbing. We have changed our name two years ago and are now a ‘Suki [accredited] Vendor’ of Manila Water. We started with small projects on pipe laying but this grew to bigger projects. Our latest project is an 11-kilometer pipe laying in Binangonan. R.O. Quintan experienced a significant growth when we partnered with Manila Water. In fact, when our business started, we only had five regular staff and one truck. Now we have 26 office staff members and several teams deployed in Pateros and Makati. We have also purchased 3 back hoes. In addition, through our experience working with Manila Water, we learned to deal with people including the LGU, and thus our operations became more efficient. We genuinely attribute our growth to our partnership with Manila Water. (Partly translated) 68 manila water 2011 sustainability report Sustainable Livelihood for Cooperatives Beyond the provision of start-up funds for small businesses, Manila Water opens up livelihood opportunities for community- based cooperative by including them in its supply chain. As such, they are asked to fabricate products and provide services that are required in its operations and are paid for by the Company at competitive rates. Through this approach, the ‘Kabuhayan Para Sa Barangay’ (KPSB) becomes more sustainable than a typical micro-financing program. Over the years, the Company has seen its KPSB cooperatives grow into stable businesses and expand their operations to include other service and product offerings. More than 1,092 families now have better income to sustain their day-to-day needs because of the KPSB program. In 2011, a total of PhP4.1 million worth of job orders for the fabrication of meter protectors and bollards, installation of ‘Lingap Eskwela’ facilities, making of corporate giveaways, carwash and printing services were given to the eight cooperatives that are under the KPSB. Economic Value Generated and Distributed (in million Pesos) total revenue 1,051 total operating expenditures concession fees 7,246 capital expenditures donations 2.2 employee wages and benefits Total 11,703 4,029 9,184 1,150 taxes and licenses 34,365.2 Rodel Ocampo Vice President for Operations, Anden Construction Zenaida Berina Vice Chairman, All Livelihood in Communications MultiPurpose Cooperative (Alivecomm) Alivecomm was established in 2005 by employees of ALC Holdings as a multipurpose cooperative. We started working with Manila Water after undergoing the accreditation process. Our first project was to implement TPSB projects in San Mateo and Binangonan by laying service pipe connections. We had eight teams which were assigned to implement TPSB. We have capacitated our team members on basic skills such as costing and billing which we believe empowered them and made them microentrepreneurs. Manila Water was our main source of revenue. Through Manila Water, we have helped a lot of our members. (Translated) Anden has been working with the MWSS even prior to its privatization in 1997. We decided to stay close and work with Manila Water upon its takeover since their projects were in full blast, they were very active, and the collection of payment was easier. We worked with Manila Water on projects with regard to sewer lines and they were our main client on the construction side. Anden grew over the years because of Manila Water. We have increased the number of our equipment and increased our manpower by 40%. Our operations and systems also improved to meet the Manila Water standards. Anden became a more solid company when we were considered as the Company’s ‘Suki [accredited] Vendor’. We’ve never had problems with payments and collections as long the billing documents we submit were complete. Manila Water is a real partner in business! (Translated) responsible business practices that drive economic growth 69 Further Growth Ahead As the Company expands its reach to more communities in the East Zone of Metro Manila, it will continue to find ways to strengthen its triple bottom line efforts through three focus areas. All these form part of Manila Water’s contribution to nation building as well as to global development, particularly the environmental sustainability targets contained in the Millennium Development Goals. Water Provision to the Urban Poor Water Education Environmental Protection Manila Water will institutionalize an Moving forward, Manila Water will advocacy In a move to make good use of its improve the Lakbayan program as its on presence in the water and wastewater main vehicle to promote stakeholder important environmental issues such sector, Manila Water will help build awareness on the wise use of water as watershed management and tree- more communities and improve the and the need for proper wastewater planting, quality of life of a greater number management. To make the program management, and proper solid wastes of low-income families by giving more dynamic and holistic, the segregation and disposal. This will be them access to clean, potable and Company will transform the existing in partnership with multi-stakeholders affordable water. The Company will Lakbayan Center into a one-stop for the program’s wider reach and also lower the barriers to having a educational center by installing greater impact on the environment. regular connection interactive game booths, a kiddie arts Parallel payment and crafts corner, and a reading nook will options to customers in marginalized where books and magazines about education program for its employees communities and by partnering with the environment will be displayed with the hope of developing more donor agencies which can subsidize for everyone’s reading pleasure. The environment champions across all connection charges. tour itineraries will also take on a employee levels. While Manila Water looks after the different approach as the program Moreover, Manila Water will further urban poor, it does not lose sight of aims to increase its exposure to the its drive to reforest and manage the rest of its customer base. The communities by going to selected the watersheds that are critical to Company will ensure that its level schools, barangays, clubs, and LGUs. Metro Manila’s water supply, and by water providing service flexible campaign raising public sewerage to this, implement an that centers awareness and the on septage Company environmental of service is able to keep up with to strengthen its Climate Change the adaptation programs to ensure that heightened expectations demands of its customers. and its facilities are climate-resilient and that its service is uninterrupted in the event of natural disasters. 70 manila water 2011 sustainability report Sustainability Performance Highlights 2009 2010 2011 Social Number of TPSB beneficiaries (in millions, cumulative) 1.6 1.7 1.7 Number of community consultations and dialogues conducted 80 50 300 100% 100% 100% 209 156 151 0 0 0 1,025 1,092 1,150 15,000 participants/ 400 batches 18,000 participants/ 500 batches 21,000 participants/ 650 batches 15,000 6,590 422,800 25 13.5 840 15% 11% 11.2% 50 57.75 70.13 3,841 2,735 3,676 Water quality compliance with PNSDW Number of top performing employees recognized Man-hours lost due to work-related fatalities Salaries and benefits paid to employees (in million pesos) Environmental Number of Lakbayan participants (cumulative) Number of seedlings planted Watershed area reforested (in hectares) Non-Revenue Water (NRW) Volume of wastewater treated (in mld) BOD removed (in tons) Number of septic tanks desludged 65,355 56,466 52,147 Number of households that received desludging services 291,469 242,026 178,258 Volume of septage treated (in cubic meters) 226,934 203,595 160,799 Volume of biosolids produced (in cubic meters) 29,635 20,968 20.443 Carbon emissions (in tons CO2 (e) ) 45,273 55,361 56,976 11.03 11.44 11.75 16 13 17.5 5 9.6 9.2 396.0 409.8 411.6 25 17 4.1 8 cooperatives/ 850 families 8 cooperatives/ 920 families 8 cooperatives/ 1,092 families Non-CO2 emissions (in tons) Savings from scrap management program (in million pesos) Economic Capital expenditures for service improvement projects (in billion pesos) Billed volume (in million cubic meters) Job orders given to KPSB cooperatives (in million pesos) Number of KPSB beneficiaries sustainability performance highlights 71 gri and iso 26000 Index profile ITEMS 72 PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED 1 Strategies and Analysis 1.1. Statement from the most senior decisionmaker of the company Page 4 – Message from the Chairman 6.2 Organizational Governance 1.2 Description of main impacts, risks and opportunities Page 14 – Enterprise Risk Management; Page 40 – Business Impact on the Communities 6.2 Organizational Governance 2 Organization Profile 2.1 Name of the organization Front cover 2.2 Primary brands, products and/or services Page 8 – Company Profile 2.3 Organizational structure and main division Page 10 – Organizational Setup 2.4 Location of organization’s headquarters Back cover 2.5 Countries / areas of operations Page 8 – Company Profile 2.6 Nature of ownership and legal form Page 9 – Shareholder Base 2.7 Markets served Page 8 – Company Profile; Page 9 – Customer Base 2.8 Scale of the reporting organization Page 8 – Company Profile; Page 26 – Summary of Employees; Page 69 – Economic Value Generated and Distributed 2.9 Significant changes during the reporting period Page 14 – Significant Changes in 2011 2.10 Awards received during the reporting period Page 15 – Awards and Recognitions 3 Report Parameters 3.1 Reporting period for information provided Page 3 – About this Report 3.2 Date of most recent previous report Page 3 – About this Report 3.3 Reporting cycle Page 3 – About this Report 3.4 Contact point for questions regarding the report or its contents Page 3 – About this Report 3.5 Process for defining report content Page 3 – About this Report; Page 18 – Partners in Sustainable Growth 3.6 Boundary of the report Page 3 – About this Report 3.7 Specific limitations on the scope or boundary of the report Page 3 – About this Report 3.8 Basis for reporting on joint ventures / subsidiaries Page 3 – About this Report 3.9 Assessment methods for data and basis for estimates in data compilation Page 3 – About this Report 3.10 Explanation of the effect of any re-statements of information provided in earlier reports, and the reasons for such re-statement Page 3 – About this Report manila water 2011 sustainability report ITEMS PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED 3.11 Significant changes from previous reporting period in the scope, boundary, or measurement methods applied in the report Page 3 – About this Report 3.12 Table identifying the location of Standard Disclosures in the report Page 72 – GRI and ISO Index 3.13 Current policy and practice dealing with external verification Page 3 – About this Report 4 Governance, Commitments and Engagement 4.1 Governance structure of the organization Page 11 – Board of Directors 6.2 Organizational Governance 4.2 Chair of the highest governance body Page 11 – Board of Directors 6.2 Organizational Governance 4.3 Members of the highest governance body Page 11 – Board of Directors 6.2 Organizational Governance 4.4 Mechanisms for shareholders to provide recommendations and direction Page 13 – Mechanisms for 6.2 Organizational Shareholders to Provide Governance Recommendation or Direction 4.5 Association between the compensation of members, of top management, and high directors, and the performance of the organization Page 13 – Board Remuneration; Page 13 – Board Evaluation 6.2 Organizational Governance 4.6 Procedures for avoiding conflict of interest in top management Page 13 – Avoidance of Conflict of Interest 6.2 Organizational Governance; 6.6.3 Anticorruption 4.7 Procedures for determining qualifications and experience of top management for guiding the organization Page 12 – Nominations Committee 6.2 Organizational Governance 4.8 Statement concerning missions and values implemented internally Page 16 – Sustainability Model 6.2 Organizational Governance 4.9 Procedures for top management to supervise the organization’s performance Page 13 – Board Remuneration; Page 13 – Board Evaluation 6.2 Organizational Governance 4.10 Process to assess the performance of top management Page 13 – Board Evaluation 6.2 Organizational Governance 4.11 Explanation of how the organization has adopted the precautionary principle Page 14 – Enterprise Risk Management 6.2 Organizational Governance 4.12 Externally developed economic, environmental and social standards Page 20 – What Sustainability Means to our Stakeholders 6.2 Organizational Governance 4.13 Memberships in associations and/or national/ international advocacy organizations Page 57 – Ipo Watershed; Page 58 – La Mesa Watershed; Pages 58-59 – Upper Marikina Watershed 6.2 Organizational Governance 4.14 List of stakeholder group engaged Page 18 – The Stakeholder Universe 6.2 Organizational Governance 4.15 Basis for identification and selection of stakeholders with whom to engage Pages 18-19 – Partners in Sustainable Growth 6.2 Organizational Governance 4.16 Approaches to stakeholder engagement Pages 18-19 – Partners in Sustainable Growth 6.2 Organizational Governance GRI and ISO 26000 index 73 PAGE and SECTION / SUBSECTION ITEMS Key topics and concerns raised by stakeholders, and the organization’s response to them 4.17 Pages 21-22 ISO 26000 CORE ISSUES ADDRESSED 6.2 Organizational Governance MANAGEMENT APPROACH DISCLOSURES ASPECT PAGE and SECTION Employees Page 24 – Employees as Catalysts to Sustainable Growth Social Page 38 – Clean Water for Healthy Communities Environment Page 50 – Commitment to Environmental Stewardship Economic Page 64 – Responsible Business Practices that Drive Economic Growth ECONOMIC PERFORMANCE INDICATORS INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Economic Performance EC1 Direct economic value generated and distributed Page 69 – Economic Value Generated and Distributed 6.7.8 Access to Essential Services; 6.8.3 Community Involvement; 6.8.9 Social Investment EC2 Financial implications and other risks and opportunities for the organization’s activities due to climate change Page 14 – Enterprise Risk Management; Page 62 – Response to Climate Change 6.2 Organizational Governance; 6.5.5 Climate Change Mitigation and Adaptation Coverage of the organization’s benefit plan obligations Page 28 – Compensation and Benefits 6.3.10 Fundamental Principles and Rights at Work; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work Significant financial assistance received from government Note: Manila Water does not receive any financial assistance from the government. On the contrary, the Company is paying the government, through the MWSS, concession fees to service its existing loans. 6.2 Organizational Governance; 6.6.4 Responsible Political Involvement Page 28 – Compensation and Benefits 6.3.10 Fundamental Principles and Rights at Work; 6.4.3 Employment and Employment Relationships; 6.4.4 Conditions of Work and Social Protection Page 67 – Support to SMEs 6.8.5 Employment Creation and Skills Development; 6.8.7 Wealth and Income Generation EC3 EC4 Market Presence 74 EC5 Range of ratios of standard entry level wage compared to local minimum wage at significant locations of operation EC6 Policy, practices and proportion of spending on locally-based suppliers at significant locations of operation manila water 2011 sustainability report INDICATOR EC7 DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Page 27 – Hiring Practices 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work Development and impact of infrastructure and services provided primarily for public benefit through commercial, in kind, or pro bono engagement Page 40-42 – Business Impact on the Communities; Page 42 – Community Development Programs; Page 66 – Investments for Service Improvement 6.7.4 Protecting Consumers’ Health and Safety; 6.7.8 Access to Essential Services; 6.8.3 Community Involvement; 6.8.4 Education and Culture; 6.8.9 Social Investment Understanding and describing significant indirect economic, including the extent of impacts Page 40-42 – Business Impact on the Communities; Page 42 – Community Development Programs; Page 66 – Investments for Service Improvement 6.7.4 Protecting Consumers’ Health and Safety; 6.7.8 Access to Essential Services; 6.8.3 Community Involvement; 6.8.4 Education and Culture; 6.8.6 Technology Development and Access; 6.8.9 Social Investment Procedures for local hiring and proportion of senior management hired from the local community at locations of significant operation Indirect Economic Impacts EC8 EC9 ENVIRONMENTAL PERFORMANCE INDICATORS INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Materials EN1 Materials used by weight or volume Page 52 – Water Abstraction by Source; Page 52 – Chemicals Usage 6.5.4 Sustainable Resource Use EN2 Percentage of materials used that are recycled input materials Pages 59-60 – Wastewater Treatment 6.5.4 Sustainable Resource Use EN3 Direct energy consumption by primary energy source Page 61 – 2011 Carbon Footprint; Page 62 – Climate Change Mitigation 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN4 Indirect energy consumption by primary source Page 61 – 2011 Carbon Footprint; Page 62 – Climate Change Mitigation 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN5 Energy saved due to consideration and efficiency improvements Page 62 – Climate Change Mitigation 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN6 Initiatives to provide energyefficient or renewable energy Page 62 – Climate Change based products and services, and Mitigation reductions in energy requirements as a result of these initiatives 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN7 Initiatives to reduce indirect energy consumption and reductions achieved Page 62 – Climate Change Mitigation 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation Total water withdrawal by source Page 52 – Water Abstraction by Source 6.5.4 Sustainable Resource Use Energy Water EN8 GRI and ISO 26000 index 75 INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED EN9 Water sources significantly affected by withdrawal of water Page 52 – Water Abstraction by Source; Page 56 6.5.4 Sustainable Resource Use EN10 Percentage and total volume of water recycled and reused Page 59 – Wastewater Treatment 6.5.4 Sustainable Resource Use EN11 Location and size of land owned, leased, managed in, or adjacent to, protected areas and areas of high biodiversity value outside protected areas Page 56 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats EN12 Description of significant impacts of activities, products, and services on biodiversity in protected areas and areas of high biodiversity value outside protected areas Pages 55-59 – Raw Water Protection and Watershed Management 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats EN13 Habitats protected or restored Pages 55-59 – Raw Water Protection and Watershed Management 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats EN14 Pages 55-59 – Raw Water Strategies, current actions, and future plans for managing impacts Protection and Watershed Management on biodiversity 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats EN15 Number of IUCN Red List species and national conservation list Page 56 species with habitats in areas affected by operations, by level of extinction risk 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats Biodiversity Emissions, Effluents and Waste 76 EN16 Total direct and indirect greenhouse gas emissions by weight Page 61 – 2011 Carbon Footprint; Page 62 – Climate Change 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN17 Other relevant indirect greenhouse gas emissions by weight Page 60 – Clean Air Act; Page 60 – Non-CO2 Air Emissions of Vehicles 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN18 Initiatives to reduce greenhouse gas emissions and reductions achieved Page 62 – Climate Change Mitigation 6.5.4 Sustainable Resource Use; 6.5.5 Climate Change Mitigation and Adaptation EN19 Emissions of ozone-depleting substances by weight Page 60 – Clean Air Act; Page 60 – Non-CO2 Air Emissions of Vehicles 6.5.4 Sustainable Resource Use EN20 NO, SO and other significant air emissions by type and weight Page 60 – Non-CO2 Air Emissions of Vehicles 6.5.4 Sustainable Resource Use EN21 Total water discharge by quality and destination Pages 59-60 – Wastewater Treatment 6.5.3 Prevention of Pollution; 6.5.4 Sustainable Resource Use manila water 2011 sustainability report INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED EN22 Page 59 – Wastewater Treatment; Page 60 – Total weight of waste by type and Republic Act (RA) 9003; Page 60 – Republic Act (RA) disposal method 6969; Page 60 – Hazardous Wastes Disposed and Treated 6.5.3 Prevention of Pollution; 6.5.4 Sustainable Resource Use EN23 Total number and volume of significant spills Page 54 – The Water Life Cycle 6.5.3 Prevention of Pollution; 6.5.4 Sustainable Resource Use EN24 Weight of transported, imported, exported or treated waste deemed hazardous under the terms of the Basel Convention Annex I, II, III and VIII, and percentage of transported waste shipped internationally Page 60 – Republic Act (RA) 6969; Page 60 – Hazardous Wastes Disposed and Treated 6.5.3 Prevention of Pollution EN25 Identity, size, protected status and biodiversity value of water bodies and related habitats significantly affected by the reporting organization’s discharges of water and runoff Page 56 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats EN26 Initiatives to mitigate environmental impacts of products and services, and extent of impact mitigation Pages 52-55 – The Water Life Cycle; Pages 55-59 – Raw Water Protection and Watershed Management; Page 59 – Water Distribution; Pages 59-60 – Wastewater Treatment; Page 63 – Greening the Supply Chain 6.5.3 Prevention of Pollution; 6.6.6 Promoting Social Responsibility in the Value Chain; 6.7.4 Protecting Consumers’ Health and Safety; 6.7.5 Sustainable Consumption; 6.7.9 Education and Awareness EN27 Percentage of products sold and their packaging materials that are reclaimed by category Page 60 – Republic Act (RA) 9003 6.5.3 Prevention of Pollution Monetary value of significant fines and total number of nonmonetary sanctions for noncompliance with environmental laws and regulations Page 54 – The Water Life Cycle 6.5.3 Prevention of Pollution; 6.7.4 Protecting Consumers’ Health and Safety Significant environmental impacts of transporting products and other goods and materials used for the organization’s operations and transporting members of workforce Page 54 – The Water Life Cycle 6.5.3 Prevention of Pollution Products and Services Compliance EN28 Transport EN29 GRI and ISO 26000 index 77 INDICATOR PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Page 63 – Expenditures on Key Environmental Programs 6.5.3 Prevention of Pollution; 6.5.4 Sustainable Resource Use; 6.5.6 Protection of the Environment, Biodiversity and Restoration of Natural Habitats; 6.7.4 Protecting Consumers’ Health and Safety DESCRIPTION Overall EN30 Total environmental protection expenditures and investments by type SOCIAL PERFORMANCE INDICATORS Labor Practices and Decent Work Indicators INDICATOR DESCRIPTION PAGE AND SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Employment LA1 Total workforce by employment type, employment contract and region Page 26 – Summary of Employees; Page 27 – Employee Distribution per Area by Age 6.4.3 Employment and Employment Relationships LA2 Total number and rate of employee turnover by age group, gender and region Page 28 – Employee Turnover per Age by Gender; Page 29 – Employee Turnover per Area by Level 6.4.3 Employment and Employment Relationships LA3 Benefits provided to full-time employees that are not provided to temporary or part-time employees, by major operations Page 30 – Employee Benefits 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work LA15 Return to work and retention rates after parental leave, by gender Page 28 – Compensation and Benefits 6.3.7 Discrimination and Vulnerable Groups; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work Labor/Management Relations LA4 Percentage of employees covered by collective bargaining agreements Page 32 – Labor-Management Relations 6.3.8 Civil and Political Rights; 6.4.5 Social Dialogue LA5 Minimum notice period(s) regarding operational changes, including whether it is specified in collective agreements Page 34 – Labor-Management Relations 6.3.8 Civil and Political Rights; 6.4.5 Social Dialogue Page 35 – Occupational Health and Safety 6.3.8 Civil and Political Rights; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work Occupational Health and Safety LA6 78 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 manila water 2011 sustainability report INDICATOR DESCRIPTION PAGE AND SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED LA7 Rates of injury, occupational Page 36 – Health and Safety diseases, lost days, and absenteeism and number of work- Statistics Board related fatalities by region 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work LA8 Education, training, counseling, prevention, and risk-control programs in place to assist workforce members, their families, or community members regarding serious diseases Page 36 – Occupational Health and Safety 6.3.9 Economic, Social and Cultural Rights; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work LA9 Health and safety topics covered in formal agreements with trade unions Page 33 – Labor-Management Relations 6.3.9 Economic, Social and Cultural Rights; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work LA10 Average hours of training per year per employee by employee category Page 34 – Training Hours per Employee Level by Age and Gender 6.3.9 Economic, Social and Cultural Rights; 6.4.7 Human Development and Training in the Workplace LA11 Programs for skills management and lifelong learning that support the continued employability of employees and assist them in managing career endings Pages 34-35 – Training and Development 6.39 Economic, Social and Cultural Rights; 6.4.7 Human Development and Training in the Workplace LA12 Percentage of employees receiving regular performance and career development reviews Page 30 – Measuring and Rewarding Performance 6.4.7 Human Development and Training in the Workplace Training and Education Diversity and Equal Opportunity LA13 Composition of governance bodies and breakdown of employees per category according to gender, age group, minority group membership and other indicators of diversity Page 11 – Board of Directors 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work; 6.4.3 Employment and Employment Relationships LA14 Ratio of basic salary of men to women by employee category Page 29 – Ratio of Basic Salary (Male to Female) 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work; 6.4.3 Employment and Employment Opportunities GRI and ISO 26000 index 79 Human Rights Indicators INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Investment and Procurement Practices HR1 Percentage and total number of significant investment agreements Page 13 – Policies and that include human rights clauses Principles Regarding Human Rights and Corruption or that have undergone human rights screening 6.3.3 Due Diligence; 6.3.4 Human Rights Risk Situations; 6.3.5 Avoidance of Complicity; 6.3.10 Fundamental Principles and Rights at Work HR2 Percentage of significant suppliers and contractors that have undergone screening on human rights and actions taken 6.3.3 Due Diligence; 6.3.4 Human Rights Risk Situations; 6.3.5 Avoidance of Complicity HR3 Total hours of employee training on policies and procedures concerning aspects of human rights that are relevant to operations, including the percentage of employees trained Page 67 – Support to SMEs Page 35 – Training and Development 6.3.3 Due Diligence; 6.3.4 Human Rights Risk Situation; 6.3.5 Avoidance of Complicity Non-discrimination HR4 Page 27 – Hiring Practices 6.3.6 Resolving Grievances; 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work; 6.4.3 Employment and Employment Relationships Operations identified in which the right to exercise freedom of association and collective bargaining may be at significant risk, and actions taken to support these rights Page 32 – Labor-Management Relations 6.3.8 Civil and Political Rights; 6.3.10 Fundamental Principles and Rights at Work; 6.4.5 Social Dialogue Operations identified as having significant risk for incidents of child labor, and measures to contribute to the elimination of child labor Page 27 – Hiring Practices; Page 67 – Support to SMEs 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work Page 27 – Hiring Practices; Page 67 – Support to SMEs 6.3.7 Discrimination and Vulnerable Groups; 6.3.10 Fundamental Principles and Rights at Work Page 36 – Security 6.3.3 Due Diligence; 6.3.4 Human Rights Risk Situations; 6.4.4 Conditions of Work and Social Protection; 6.4.6 Health and Safety at Work Total number of incidents of discrimination and actions taken Freedom of Association and Collective Bargaining HR5 Child Labor HR6 Forced and Compulsory Labor HR7 Operations identified as having significant risk for incidents of forced or compulsory labor, and measures to contribute to the elimination of forced or compulsory labor Security Practices HR8 80 Percentage of security personnel trained in the organization’s policies or procedures concerning aspects of human rights that are relevant to operations manila water 2011 sustainability report INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Indigenous Rights HR9 Total number of incidents of violations involving rights of indigenous people and actions taken Page 27 – Hiring Practices; Page 57 – Ipo Watershed 6.3.7 Discrimination and Vulnerable Groups; 6.8.5 Employment Creation and Skills Development; 6.8.7 Wealth and Income Generation; 6.8.9 Social Investment Percentage and total number of operations that have been subject to human rights reviews and/or impact assessments Page 13 – Policies and Principles Regarding Human Rights and Corruption 6.3.3 Due Diligence; 6.3.4 Human Rights Risk Situations; 6.3.5 Avoidance of Complicity Number of grievances related to human rights filed, addressed and resolved through formal grievance mechanisms Pages 33-34 – LaborManagement Relations 6.3.6 Resolving Grievances Assessment HR10 Remediation HR11 Society Indicators INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Community Nature, scope and effectiveness of any programs and practices that assess and manage the impacts of operations on communities, including entering, operating and exiting 6.6.7 Respect for Property Rights; 6.7.4 Protecting Page 40-42 – Business Impact Consumers’ Health and Safety; on the Communities; Page 68 6.8.5 Employment Creation and Skills Development; – Sustainable Livelihood for 6.8.7 Wealth and Income Cooperatives Generation; 6.8.8 Health; 6.8.9 Social Investment SO9 Operations with significant potential or actual negative impacts on local communities 6.6.7 Respect for Property Rights; 6.7.4 Protecting Page 40-42 – Business Impact Consumers’ Health and Safety; on the Communities; Page 68 6.8.5 Employment Creation and Skills Development; – Sustainable Livelihood for 6.8.7 Wealth and Income Cooperatives Generation; 6.8.8 Health; 6.8.9 Social Investment SO10 Prevention and mitigation measures implemented in operations with significant potential or actual negative impacts on local communities 6.6.7 Respect for Property Rights; 6.7.4 Protecting Page 40-42 – Business Impact Consumers’ Health and on the Communities Safety; 6.8.8 Health; 6.8.9 Social Investment SO2 Percentage and total number of business units analyzed for risks related to corruption Page 13 – Policies and Principles Regarding Human Rights and Corruption 6.6.3 Anti-corruption SO3 Percentage of employees trained in organization’s anti-corruption policies and procedures Page 13 – Policies and Principles Regarding Human Rights and Corruption 6.6.3 Anti-corruption SO1 Corruption GRI and ISO 26000 index 81 INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Actions taken in response to incidents of corruption Page 13 – Policies and Principles Regarding Human Rights and Corruption 6.6.3 Anti-corruption SO5 Public policy positions and participation in public policy development and lobbying Page 48 – Participation in Public Policy Development 6.6.4 Responsible Political Involvement SO6 Total value of financial and in-kind Page 48 – Participation in contributions to political parties, politicians, and related institutions Public Policy Development by country 6.6.4 Responsible Political Involvement SO4 Public Policy Anti-Competitive Behavior SO7 Total number of legal actions for anti-competitive behavior, antitrust and monopoly practices and their outcomes SO8 Monetary value of significant fines and total number of non-monetary sanctions for non-compliance with laws and regulations Page 8 – Company Profile 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices Page 8 – Company Profile 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices Product Responsibility Indicators INDICATOR DESCRIPTION PAGE and SECTION / SUBSECTION ISO 26000 CORE ISSUES ADDRESSED Pages 52-55 – The Water Life Cycle 6.7.4 Protecting Consumers’ Health and Safety; 6.7.5 Sustainable Consumption; 6.7.8 Access to Essential Services; 6.7.9 Education and Awareness; 6.8.8 Health 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 service categories subject to such procedures PR2 Total number of incidents of non-compliance with regulations Page 42 – Business Impact on and voluntary codes concerning the Communities health and safety impacts of products and services during their life cycle, by type of outcomes 6.7.4 Protecting Consumers’ Health and Safety; 6.8.8 Health; 6.8.9 Social Investment Product and Service Labeling 82 PR3 Type of product and service information required by procedures, and percentage of significant products and services subject to such information requirements Page 48 – Responsible Advertising, Marketing and Communications 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices PR4 Total number of incidents of non-compliance with regulations and voluntary codes concerning product and service information and labeling, by type of outcomes Page 48 – Responsible Advertising, Marketing and Communications 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices manila water 2011 sustainability report INDICATOR PAGE and SECTION / SUBSECTION DESCRIPTION Practices related to customer satisfaction, including results of surveys measuring customer satisfaction ISO 26000 CORE ISSUES ADDRESSED Page 46 – Customer-Centric Service 6.7.6 Consumer Service, Support and Complaint and Dispute Resolution PR6 Programs for adherence to laws, standards, and voluntary codes related to marketing communications, including advertising, promotion and sponsorship Page 48 – Responsible Advertising, Marketing and Communications 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices PR7 Total number of incidents of non-compliance with regulations and voluntary codes concerning marketing communications, including advertising, promotion, and sponsorship by type of outcomes Page 48 – Responsible Advertising, Marketing and Communications 6.6.5 Fair Competition; 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices Page 48 – Responsible Advertising, Marketing and Communications 6.7.4 Protecting Consumers’ Health and Safety; 6.7.7 Consumer Data Protection and Privacy Page 42 – Business Impact on the Communities; Pages 5255 – The Water Life Cycle 6.7.3 Fair Marketing, Factual and Unbiased Information and Fair Contractual Practices; 6.7.4 Protecting Consumers’ Health and Safety; 6.8.8 Health PR5 Marketing Communications Customer Privacy Total number of substantiated complaints regarding breaches of customer privacy and losses of customer data PR8 Compliance Not Required Report fully on a minimum of any 10 Performance Indicators, including at least one from each of: social, economic, and environment Performance Indicators and Sector Supplement Performance Indicators B Report on all criteria listed for Level C plus: 1.2 3.9, 3.13 4.5-4.13, 4.16-4.17 Management Approach Disclosures for each Indicator Category Report fully on a minimum of any 20 Performance Indicators, at least one from each of: economic, human rights, labor, society, product responsibility B+ A A+ Same as requirement for Level B Management Approach disclosed for each Indicator Category Respond on each core and Sector Supplement* indicator with due regard to the materiality Principle by either: a) reporting on the indicator or b) explaining the reason for its omission Report Externally Assured Output Disclosures on Management Approach Output Report on: 1.1 2.1-2.10 3,1-3.8, 3.10-3.12 4.1-4.4, 4.14-4.15 Profile Disclosures C+ Report Externally Assured C Output Standard Disclosures GRI Application Levels Report Externally Assured PR9 Monetary value of significant fines for non-compliance with laws and regulations concerning the provision and use of products and services GRI and ISO 26000 index 83 Stakeholders’ Commentaries Oscar M. Orbos Former Executive Secretary, Philippine National Government; and Partner, Orbos, Cabosura, Taguiam and Associates Manila Water Company’s release of its annual Sustainability Report, where GRI and ISO standards are applied, is a clear testament of the Company’s desire to provide its present and future stakeholders, a document on which its performance and commitments are framed against transparency and accountability standards beyond what is required by our laws and regulations. This is quite admirable, especially as Manila Water is a company engaged in a ‘most public’ business – which is to provide affordable and reliable water and sewerage services, and to do so sustainably for present and future communities. This annual Sustainability Report provides the public a clear roadmap of what’s ahead – that communities can and will grow into the future; assured that the basic need for affordable, reliable water and proper sewerage services will continue to be addressed by the Company. The Sustainability Report effectively ‘locks-in’ Manila Water’s future to the future of its stakeholders, tying the sustainability of its business to the welfare of the public it serves. There is a need therefore for Manila Water to defend and preserve that which enables its stakeholders to grow, and to sustain all these for succeeding generations. Ronald Barcena Board Member, Antipolo Provincial Government The 2011 Sustainabilty Report is commendable beyond doubt. It is a demonstration of altruism- doing business, but taking greater account at the Corporate Social Responsibility. It is a blue-print which manifests dedication to equity and security in the context of sustainable development, as a way of giving back to the investing public the highest standard of service and accountability. The goal of sustainability establishes principles and indicators in arraying the priority of uses of the natural assets and capital of the nation, primordial of which is WATER. The organic integrity of water is crucial to its sustainability. We are all duty-bound to ensure that the combined natural and human interventions to water will result in development that is socially, economically and ecologically sustainable. From the launching of the “Tubig Para Sa Barangay (TPSB), moving forward to active stance in watershed management, ground water protection and essential initiatives on Climate Change, Manila Water has gone far in demonstrating the “walk the talk” leadership rule. They put into action on what they envision. As we take cognizance of the principle of establishing good and shared governance and pursuing its real essence, I admire Manila Water in initiating and using the report as a medium to create an enabling setting that will further the engagement and empowerment of a multi -stakeholders commitment in the pursuit of environmental stewardship and sustainable development founded and has matured under a strong public- private partnership. In recognition of your notable contribution to social changes let me share this maxim: “The brands that will be big in the future will be those that tap into social changes that are taking place.”- Sir Michael Perry 84 manila water 2011 sustainability report Jose Fabian I. Cadiz, M.D. Vice Mayor, City of Marikina The City Government of Marikina has always been actively involved in environmental concerns. The present administration under the inspiring leadership of Hon. City Mayor Del R. De Guzman is in fact giving premium to this as it is one of its 7K Programs of Government dubbed as Kapaligiran. It is with pride that Manila Water has committed itself to partner with the City Government and, to date, it remains as a strong ally in this endeavor. Such a commitment has turned into a grand and striking reality. Its putting up of the Olandes Sewage Treatment Plant located in Barangay Industrial Valley Complex within the vicinity of the banks of Marikina River eloquently demonstrates Manila Water’s commitment to environmental protection as it treats water before it recombines with the river waters. Indeed, Manila Water has taken the extraordinary task of establishing a legacy for the benefit of the Marikeños by providing them these remarkable sewerage and sanitation services. Apart from this, Manila Water has started to establish the Marikina East Sewage Treatment Plant. For sure, this project again guarantees an adequate and affordable water and sanitation services to the city residents. The 2011 Sustainability Report discloses all these outstanding accomplishments as regards the social and environmental engagement initiatives of Manila Water. It provides a clear picture of Manila Water’s performance and communicates this evidently for all its stakeholders. This moreover proves the importance the Company places on sustainability on all three fronts – economic, social and environmental. The Report shows not only the business side, but also the effect of effectively managed water and wastewater service to society and our environment. Undeniably, the City Government of Marikina is blessed to have Manila Water as its unwavering collaborator in its efforts to provide clean water to the Marikeños, and together, hand in hand, continuously and squarely address the water and sanitation challenges of the times. Congratulations on a job well done in 2011! Julio Galvez Tan Chief Operating Officer, Foster People’s Education, Empowerment & Enterprise, Inc. (FPE3) Manila Water Company’s 2011 Sustainability Report is a good and interesting read. The moment I finished reading the report, I now know why Manila Water is a successful company. The report presents a clear picture of the company’s governance, principles, sustainability policy and programs. The efficiency and effectiveness of its services is well reported and testimonies from various stakeholders, from employees to consumers, attest to this. As a consumer in Manila Water’s service zone, I can relate to the various testimonies of its stakeholders regarding Manila Waters services. The information contained in the report is presented with matrixes and charts. I particularly like the company’s employees gender disaggregated data, where I am happy to see that women are a significant part of its workforce. This is an indicator of equal opportunity. The centerpiece of the report is the section on the Sustainability Model where the Sustainability Policy is defined. I also appreciate that Manila Water outlined 10 commitments to achieve sustainability. The results of each of these commitments are found in the report. It will be interesting to see how these results will be reported in the succeeding years. I do wish that Manila Water continues its commitment to environmental sustainability which means that the bottom line is not just profit but also excellent service delivery and care of our environment. Congratulations to Manila Water for coming out with its 2011 Sustainability Report. This is a best practice in transparency and accountability. stakeholders’ commentaries 85 Bonar Laureto Executive Director, Philippine Business for the Environment (PBE) The role of Business in our stride towards low-carbon economy and green growth is crucial, to say the least. For over 20 years now, Philippine Business for the Environment (PBE) has endeavoured to build capacity and implement programs with the private sector to reduce their impact to the environment and enhance their contribution to society and economy. Manila Water is among the pioneers to demonstrate significant improvements in such areas of sustainability. MWC has been given the Eco-Switch Award for its achievements in energy and resource efficiency. This year, MWC reports reduction in its total fuel consumption from 5,500 tons CO2e in 2010 to 3,675 tons CO2e in 2011. Although it has expanded its operations, Manila Water has only slightly increased its carbon emissions from 55,361 tons in 2010 to 56,976 in 2011. Further, Manila water also reports 840 hectares of watershed planted with 422,800 trees in 2011 from only 13.5 hectares in 2010. Manila Water’s 36 Sewage treatment Plants removed 3,676 tons of organic pollutants (BOD) from our river systems. These efforts are testament to MWC’s strong grasp of the inter-relationship between their business and natural ecosystems. The business of supplying water to communities is a social responsibility by itself. Thus, MWC’s ability to serve is only as good as the ecosystems’ capacity to provide water. PBE has worked with MWC to help make the more Filipinos understand this concept through its Water Trail Project. PBE also provides assistance to MWC for its fuel efficiency and GHG reduction program from its vehicles - Clean Fleet Management. PBE is a proud partner of Manila Water! Eva M. Clemente Head, Laboratory Services Department Manila Water In an extraordinary way, Manila Water has soared engaging in business with a heart. This Sustainability Report so aptly and comprehensively captures how conducts business, how Manila Water cares – for the environment, for the customers and various stakeholders, for employees. One of my most enduring memorial of Manila Water was from the early days of its Tubig Para sa Barangay program. As a cadet in Marikina then, I personally witnessed people lining up to get water from a single community faucet, felt their need for better water service and worked with the community and with the office towards a secure pipeline that will give them individual household connections. Whenever I pass by this community now, I see how much their lives have improved and I am honoured to know that we have been a part of such a milestone. Truly, Manila Water has been a force that has contributed towards improving lives. Keeping true to its mission, Manila Water should also be commended for its proactive works for the environment. I know that it is committed to address one of the biggest environmental challenge we face - that of wastewater and river water quality. This is a multifaceted challenge requiring synergistic efforts from both public and private sectors. I am sure that with Manila Water’s dedication and team spirit, changes towards a healthier environment will happen. As Manila Water pursues the breadth of its vision while championing social responsibility, I have no doubt that it will remain ahead of the pack in the water and wastewater industry. 86 manila water 2011 sustainability report Mark Tom Q. Mulingbayan Head, Environment Department Manila Water The classic definition of sustainability visually presents the economy, society and environment as three overlapping circles, with sustainability attained at the convergence of the three. Another way of looking at it is to imagine three concentric circles, one being totally surrounded by a bigger one. The first and smallest circle, the Economy (to which business belongs), cannot succeed in a Society (bigger circle) that is not working, and Society cannot thrive in a physical Environment (biggest circle) that is balancing on its edge. It is this sequence of dependencies that gives the imperative for Manila Water to adopt its sustainability framework. This sustainability report is testament to the success of that framework. If there’s a common observation one can make based on the past and current sustainability reports of Manila Water, it is that the Company’s sustainability initiatives are never undertaken in isolation. The partners who we work with have their mandates that are, in one way or another, aligned with our own. Still, we realize we can do more to enhance opportunities to work with more Manila Water stakeholders, as this country needs a critical mass of aware, responsible and committed individuals and organizations to further our common advocacies on economic, social and environmental issues. In the realm of environmental work, for example, it is our goal not to just develop the environmental champion in our own employees, but to challenge our business partners, and eventually our customers, to move in the same direction. I would like to believe that every employee feels proud to be part of an organization that actually makes things happen, where we walk our talk, and where the opportunities to align our personal advocacies (who does not want to help make the world a better place?) with what the company does are endless. stakeholders’ commentaries 87 Concept, Content Design and Layout Medium3 Inc. Photography Frank Callaghan Wig Tysmans Glerick Ignacio Thom Ryan Ortega Print Production Primex Printers, Inc. The Manila Water 2011 Sustainability Report cover is printed on FSC-cer fied Mohawk Op ons, which is made with 100% post-consumer waste. 100% of the electricity used to manufacture the paper is offset with Renewable Energy Cer ficates (RECs) from nonpollu ng wind power projects. The inside pages of this report are printed on 9 lives offset 80 gsm 100% recycled, a unique uncoated paper that reduces carbon footprint. Concept, Content Design and Layout: K2 Intera ve (Asia) Inc. Photography: Wig Tysmans (Portraitures) Oliver Marqueses (Oper ons) Dave Michael Valeriano (Opera ons) Artwork for the Cover: Manila Water Branding Team