shell world
Transcription
shell world
ISSUE 4 2008 SHELL WORLD PHILIPPINES PRIN E U T L S B 06 Shell and Victory Liner SC 10 Lightbulb Moments R A MBL E 26 You Reap What You Sow 28 21st Century Einstein THE ROUTE TO 2050: Scenarios for the Energy-Driven World The future energy system and the challenges ahead page 20 Complete SWP 4.indd 1 1/20/09 5:53:18 PM ISSUE 4 2008 SHELL WORLD PHILIPPINES SHELL WORLD PHILIPPINES UEPRINTS L B Editorial Advisors Roberto S. Kanapi Mylene M. Santos Editor-in-Chief Sankie G. Simbulan Managing Editor Jun Jay G. Jimenez Writers Jun Jay G. Jimenez Jocelyn Diana-Diga Christine R. Guison Contributors Ria Carina Comsti Ma. Divina De Leon Clara Antonette Eser Alya Honasan Chito Maniago Jun Manuel Jacky Nicolas Erwin Orocio Suiee Suarez Tisha Timbang CONTENTS ISSUE 4 2008 SC Scenarios for the Energy-Driven World The future energy system and the challenges ahead 04 INTRODUCING PETER VOSER Know his insights on his new role as Chief Executive and how he will lead Shell into the future 06 SHELL AND VICTORY LINER Decades of business partnership in the service of Filipino commuters To contact the SWP Team: E-Mail [email protected] Website www.shell.com.ph Shell World Philippines is published quarterly for the employees of the Shell companies in the Philippines and for interested readers outside the business. Opinions expressed do not necessarily reflect the official views of any Shell company. The following expressions are inherent to Shell businesses in the Philippines: SciP (Shell companies in the Philippines), which encompasses its companies in the country; and Pilipinas Shell (Pilipinas Shell Petroleum Corporation). The specific names of other Shell companies will be duly mentioned in the article. Shell World Philippines is published by the Communications Department for the Shell companies in the Philippines. 2 SHELL WORLD PHILIPPINES Complete SWP 4.indd 2-3 R A MBL E THE ROUTE TO 2050: SCENARIOS FOR THE ENERGY-DRIVEN WORLD The future energy system and the challenges ahead 20 08 YOUNG HESITANT TO ACT ON CLIMATE CHANGE Young people are worried about the effects of climate change but are hesitant to take action 10 LIGHTBULB MOMENTS As energy problems become more challenging, Shell relies increasingly on human intelligence, bright ideas and professional discipline to secure a responsible energy future 12, 30 COUNTRY ROUND-UP A mix of stories about the various business and social development activities of Shell companies in the Philippines that support the country’s quest for progress and development 16 LEADING THE CHANGE AGENTS THROUGH COMMUNICATION Downstream-One Communications Lead Ronald “Suiee” Suarez orchestrates his team to effectively communicate changes taking place in the Downstream business 18 24 CHAPTER ONE Shell’s sustainable development gatekeeper talks about the various social investments and volunteerism efforts designed to uplift the lives of people in communities 26 YOU REAP WHAT YOU SOW Small scale farming blossoms in El Nido, Palawan where plots of land turn into models of sustainable practice 28 21ST CENTURY EINSTEIN A young Pinoy inventor explores the world of sound to address the plight of fishermen Welcome Dear Colleagues, As we welcome the New Year, the entire Shell World also welcomes its new Chief Executive, Peter Voser. Learn more about Shell’s new leader and his insights on navigating the company into the future on page 4. 2009 is said to be a challenging year. It is a time when the issues surrounding the three hard truths of surge in energy demand, tightening energy supply and rising CO2 emissions from energy use become increasingly relevant. At this critical juncture, the decisions we make today will shape our energy landscape over the next half-century. Find out about Shell’s energy scenarios to 2050 and what it means for all of us in our cover feature on page 20. THE ROUTE TO 2050: Cover Design Lois Albacite Mailing Address Shell World Philippines 14/F Shell House 156 Valero St., Salcedo Village Makati City 1227 18 TOWARDS THE GOLDEN YEAR: DEFINING THE GRAVITY OF FILIPINO ARTISTRY A salute to the winners of the 41st Shell National Students Art Competition New ideas and innovative thinking are essential to meet society’s present needs and the challenges the world currently faces. Get to know the stories behind some of our Shell scientists’ most creative energy solutions in Lightbulb Moments on page 10. This first month of the year also signals the six-month countdown to the DownstreamOne programme’s Go-Live date in the Philippines, which happens on July 1. In this historic change event, communication is an important tool to help prepare the organisation for the new changes that will be taking place. Read about the Communications Network’s role in ensuring a successful Go-Live on page 16. New year, new beginnings. There will be new challenges, but there most certainly will be new opportunities. Let us welcome 2009 with our trademark optimism, ingenuity and tenacity and prepare for yet another exciting year ahead! Sankie G. Simbulan Business and Corporate Communications Manager 28 35 LEGAL SPEAK AN INHERITANCE ISSUE A tale of two embattled women fighting for their rightful share to properties for themselves and their children 38 2008 SNAPSHOT: THE YEAR THAT WAS Bringing back the fun and excitement with memorable photographs of Shell events To help think about the future of energy, Shell developed two scenarios to explore alternative ways it may develop: Scramble and Blueprints. Read more about these scenarios at www.shell. com/scenarios. SHELL WORLD PHILIPPINES 3 1/20/09 5:53:30 PM FEATURE PETER VOSER – INTRODUCING ROYAL DUTCH SHELL’S CHIEF EXECUTIVE DESIGNATE To lead a company like Shell is a great honour, it’s exciting but it’s also a great challenge.” PETER VOSER, CHIEF EXECUTIVE DESIGNATE, SHARES HIS THOUGHTS ON TAKING ON THIS MOST IMPORTANT ROLE, AND GIVES US AN INSIGHT INTO HOW HE INTENDS TO TAKE THE COMPANY FORWARD INTO THE FUTURE. O n 29 October 2008, the Board of Royal Dutch Shell plc announced that Chief Financial Officer (CFO) Peter Voser would become the next Chief Executive (CE), effective 1 July 2009. Peter will replace Jeroen van der Veer who has held the post since 2004. A Swiss national, described by the media as ‘a cool head in troubled times’, Peter Voser is taking the reins at a time of great economic uncertainty, and mounting environmental and social pressure. A time when the issues surrounding the three hard truths become increasingly relevant: accelerating global energy demand in the long term, the end of easy oil, and a growth in energy use leading to a growth in CO2. So, what are Peter’s first thoughts about the role he is about to undertake? It is with a feeling of pride that he takes on the job. “To lead a company like Shell is a great honour, it’s exciting but it’s also a great challenge. Shell is acknowledged as a truly global, industry-leading energy company. We also have a global reputation for our pioneering technologies and our successes in international business, and I intend to build on this.” To this end, he plans to devote a considerable portion of time at the beginning of his role as CE, to visiting the regions, meeting with and listening to employees, supporting existing business relations, building new ones and exploring what Shell needs to do to be a good corporate neighbour and a partner of choice. “I’m very keen to build up relationships with local stakeholders. Our business is built on natural resources in its widest form. We must remember that these natural resources belong to the countries in which they are found; they belong to people and governments. It will continue to be important for us to ensure that we work efficiently and effectively with these groups. We have a lot to offer, not only by way of technological solutions. I think Shell is recognised as being a great company in its approach to compliance, to business principles, to safety, environment, sustainable development, and we will continue to live up to these principles.” People making the difference But for Peter, perhaps the most important elements of Shell’s success and reputation are its people. “We are recognised for the quality of our people - their professionalism, integrity, diversity and dedication. And in order for us to remain one of the world’s top performing energy companies, I will need the support and cooperation of everyone who works for Shell; working together in a constructive and integrated way is what continues to make the difference.” Peter Voser’s approach to working with people focuses openness, trust, teamwork and the importance of giving individuals the freedom and support to get on with the job. As he says, “I am a ‘people person’. Being approachable, having an open mind and good listening skills, helps you get the best out of people. As a leader I will never be better than the sum of my team. This is an important point for all managers to take onboard. To use a football example, if you are at the front, trying to score a goal, if the other players are not doing what they need to do to get the ball to you, its not going to happen. So, it’s the team that counts.” He goes on to reinforce this: “teamwork is absolutely essential for success, and clarity about roles and accountabilities is a vital part of helping to facilitate good decision-making. I ask everyone who works with me to take decisions and be open and accountable regardless of the consequences. It is essential to recognise that we learn both from our successes and our failures.” Transition period, mixing the old with the new Peter will take over the role of CE at the beginning of July 2009, however until then he will continue as CFO, which as he says, given the current economic climate, gives him more than enough to do. According to Peter, the bulk of the handover will take place in June, but the process of starting to embed himself with global stakeholders and taking on some aspects of the future role, will probably start in April or May. In the meantime, he is very clear that he is the Chief Financial Officer and Jeroen van der Veer is the Chief Executive. And what of the future, will there be continuity between what Jeroen has done and the direction that Peter intends to take the company? “I’m very happy to continue to build on the excellent work Jeroen has delivered during his time in office. As a result of what Shell has achieved under his guidance, we have strong foundations to take the company forward into the next decade. It’s been a great privilege to work with Jeroen, and I look forward to taking over the reins from him, and taking the company to the next level.” SWP Peter graduated in1982 in business administration from the University of Applied Sciences, Zurich. Who is Peter Voser? From August 1982 to March 2002 he worked for Shell in a variety of Finance and Business roles including postings in Switzerland (5 years), United Kingdom (8 years), Argentina (5 years) and Chile (2 years). Peter went to work as Chief Finance Officer for Asea Brown Boveri in Switzerland in 2002, returning to Shell in 2004. In 2005, he was appointed Chief Financial Officer and Executive Director of Royal Dutch Shell plc. Peter is married and has three children. He enjoys hiking and skiing. He describes himself as ‘footballmad’ and played professionally as a young man for the second division Swiss club FC Wettingen. Source: Katharina Auer - Head of Global Internal and Management Communications 4 SHELL WORLD PHILIPPINES SHELL WORLD PHILIPPINES 5 Source: Bernadette Cunnane - Global Internal Communications Complete SWP 4.indd 4-5 1/20/09 5:53:40 PM Shell and Victory Liner: Partnership that surpasses the test of time FEATURE By JUN JAY G. JIMENEZ SHELL AND VICTORY LINER CELEBRATING VICTORIES THROUGH THE YEARS 1960s Through the ingenuity of Jose Hernandez, Sr., Victory Liner pioneered in the conversion of front engine buses and the use of steel-bodied buses. In the late 1960s, the company adapted the use of diesel engines for its growing fleet. 1970s Victory Liner provided the riding-public with air-conditioned provincial bus service, a novelty at that time. The company made a significant move to sign up Shell as supplier of its fuel requirements. It was also the first bus company to institute a queuing system for orderly boarding of passengers on buses. By JUN MANUEL and JUN JAY G. JIMENEZ 1980s Victory Liner was the first local bus company to use automatic transmission (the GM-Allison automatic transmission) for its buses and introduced television and video facilities on board. During this decade, the company embarked on an aggressive training programme for its drivers, conductors, and mechanics on road safety, customer service, and bus maintenance. The A Shell GTL audi car atalso a retail site its franchise routes in the 80s. company started in London, UK. 1990s New bus terminals sprouted in strategic locations in Metro Manila. Victory Liner has maintained stability amid setbacks brought by the devastating earthquake in 1990, the eruption of Mount Pinatubo in 1991, the withdrawal of US Military Bases in 1992, and other succeeding downturns that afflicted the Philippine economy. 2000 and beyond Photos by Walter Villa and Jun Jay G. Jimenez Victory Liner broadened its partnership with Shell by sealing a deal which covers not only its fuel requirements for its growing fleet of buses, but also lubricants and rust-proofing chemicals. C ustomer focused, innovative, safe and reliable. These are some of the qualities that catapulted Victory Liner, Inc. (VLI) from a mere bus company in the 1940s to an institution in the Philippine public transport industry. VLI’s success is the handiwork of its founder and patriarch, Jose I. Hernandez, Sr., a visionary who combined hard work and ingenuity in overcoming the difficulties of doing business in the post World War II era. His life long passion for service, love of people and value for family ties laid a strong foundation to the system of values that has continued to energise VLI’s operations through the years and contributed to its past and present triumphs. VLI Maintenance Manager Bernabe “Anjing” Hernandez, Jr., grandson of the late Jose, Sr., recounts, “Right after the end of the Second World War, my grandfather thought of resuming their business of trading patis (fish sauce), bagoong (fish paste), vegetables and rice. But they were hard up on cash.” 6 SHELL WORLD PHILIPPINES Complete SWP 4.indd 6-7 Using parts taken from abandoned M-38 jeeps, ammunition carrying Chevy trucks and other relics that were left behind by the US Forces in the Far East (USAFE), Jose, Sr. together with his brothers-in-law Eugenio and Leonardo rebuilt their dilapidated truck for the transport of goods plying the BatangasPier-Olongapo route. has in his hands the challenging task of taking the company to greater heights. While transporting goods to and from Olongapo, Jose, Sr. thought of fetching passengers along the way and found that transporting people had a potential of being a lucrative business. He followed his instincts and the rest is history. Johnny shared that his responsibilities as president and general manager of VLI increased exponentially compared to the time when he first joined the company as one of its apprentices more than three decades ago. “VLI’s fleet of buses was only around 300 units and the business environment was not as competitive as it is today,” he explains. In keeping with the winning tradition VLI’s stories of triumphs, which include the company’s rise from the ashes of the Second World War, continue to inspire the next generations of the Hernandez family to bring VLI at the forefront of the public transport business in the country. VLI is currently headed by its President and General Manager Johnny T. Hernandez. Tito Johnny, as he is fondly called by VLI employees, Managing a company that employs some 3,000 people and operates nearly 1,000 buses is not an easy task for him, especially in light of the current economic crunch and a host of other challenges pounding the public transport industry. He shared that aside from operational issues, there are other huge obstacles facing the public transport industry. “Our industry is very regulated. There is only so much we can do with our top line. If we cannot control our costs, we can be in the red any time. That fast! See how other public transport companies have folded up one after the other,” With the transport industry entering an era of intense competition, Victory Liner and Shell continuously work together by improving the bus liner’s facilities which include establishing a lube clinic, a facility that analyses the reusability of lubricants, in support of the on-going bus fleet modernisation. Jose I. Hernandez, Sr., a pre-war mechanic, founded Victory Liner. With his enterprising nature, he collected bits and pieces of machinery, metals and spare parts from abandoned U.S. Military vehicles. With all the materials he had collected, Jose built a delivery truck for his family’s buy and sell business of rice, corn, vegetables and their home-produced laundry soap. What he had envisioned to be a delivery truck turned out to be more like a bus. Jose named his bus line Victory Liner, which he adapted from “Victory Joe”, a popular phrase then which was reminiscent of America’s victory in World War II. Since his first name is Jose, which means “Joe” in English, he thought that Victory Liner would be a catchy name for his bus company. Victory Liner’s first bus plied the Manila-Olongapo-Manila route on October 15, 1945, only two months after the end of World War II. Jose, Sr. drove the bus with his brotherin-law, Leonardo D. Trinidad, as his conductor. the transport mogul shares. He emphasised, however, that a crucial factor that contributes to one’s staying power in the transport business is the choice of business partners. to our company. This shows that Shell is not just after signing us up for supply deals but committed to maintain a good, long term business relationship with us.” Choosing Shell VLI commenced its business relationship with Shell in the 70s when the second generation of the Hernandez family became involved in the business. Back then, the company’s supply agreement with Shell only covered fuels and chemicals. The ensuing decades of VLI operations showed resiliency to the challenges of the times and achieved a stature of competence and good service in the public transport sector. Johnny says what he appreciates in particular are the regular visits and dialogues with Shell executives, who invest their time to ensure that the customer’s needs are provided. In addition, the good fuel price of Shell helps to ensure the cost-effectiveness of their operations. It is a winwin relationship. The growth of VLI also blossomed into a fruitful partnership with Shell. In year 2000, VLI signed an accord with Shell for supply of lubricants through the efforts of former Commercial Account Manager Gari Tiongco. Just recently, VLI also purchased a significant volume of Shell Rustguard for the undercoating and underbody protection of its fleet of buses and has agreed to a long-term rust-proofing programme with Shell. On why VLI chose Shell over others, Johnny has this to say, “We are very pleased with the infrastructure, equipment, discounts, and sponsorships that Shell has been offering, which in many ways contributed to the growth of our business. Most of all, we are happy with the service of Shell’s account executives. Through the years, all of them rendered commendable support VLI hopes that the coming years will bring an even stronger and more fruitful partnership with Shell. The bus company currently plans to introduce innovative measures that optimise the use of Information Technology (IT) for increased operational efficiency and looks to partnering with Shell in carrying out this endeavour. Shell and VLI have already collaborated in promoting innovative solutions to ensure efficient, longterm operations through such projects as the Shell Lube Clinic, which helps to analyse oil quality to prolong the usability of VLI’s bus fleet, and the Drivers Academy, which imbibes best practices in road safety to help VLI drivers to safely transport thousands of passengers to their destinations daily. The partnership of Shell and Victory Liner has withstood the test of time. Looking forward into the future, this alliance shall continue to make leaps and bounds by introducing breakthrough technologies that can help shape the future of the public transport industry in the country. SWP SHELL WORLD PHILIPPINES 7 1/20/09 5:54:52 PM WH FEATURE YOUNG HESITANT TO ACT ON CLIMATE CHANGE Young people are worried about the effects of climate change but are hesitant to take action. In fact they want to have it all, from wealth to renewable energy, says an international survey. B y 2050 people will travel in flying cars, get much of their power from renewable energy and live a life of luxury in a world without borders. That optimistic image of the future emerged from a survey of young adults in 27 countries worldwide. And while survey respondents believe their generation will have to adapt to rising sea levels and other effects of global warming, they are reluctant to make personal sacrifices that could help address the problem. The poll of 17- to 24-year-olds by market researcher TNS, which was supported by Shell, gives a fascinating insight into their view of the future. Their answers to 24 questions about hopes and fears show they are largely optimistic about their own welfare. Most expect to be better off than their parents by 2050. More young adults in Nigeria, India, Mexico and Russia think so than in any other surveyed country. On the other hand, Dutch and Japanese respondents were the most pessimistic, expecting to earn less than their parents. Down-to-earth hopes Most young people expressed down-to-earth hopes about the future. Job satisfaction and raising a family were the top two aspirations in most countries. In China, however, threequarters of respondents aspired to focusing on spirituality, while in Indonesia 63% — four times the global average — hoped to become famous. In the eyes of young people transport will look very different by 2050, although there is little agreement on where it is headed. Brazilians believe their country’s two-million-strong fleet of biofuel-powered cars will grow further, while Canadians say electric vehicles will be more widespread. For the Chinese it will be magnetic monorails and solar-powered cars. Bruneians expect to get around in personal flying machines. Americans expect to see more hybrid vehicles on the road, but Nigeria’s young adults see little change and expect petrolfuelled cars will remain the most common mode of personal transport. Meanwhile the Dutch forecast more hydrogenpowered cars, and — ironically for a nation where bicycles already outnumber people — even more bicycles. War and climate change When it comes to fears about the future, young adults most often cited war and terrorism, followed by climate change. The vast majority of respondents believe human behaviour causes climate change and are certain it will affect them personally. One-fifth of Russian respondents 8 SHELL WORLD PHILIPPINES Complete SWP 4.indd 8-9 While survey respondents believe their generation will have to adapt to rising sea levels and other effects of global warming, they are reluctant to make personal sacrifices that could help address the problem.” even said life on earth will be extinct by 2050. At the other extreme, one-third of Nigerians did not expect any real change to the environment. In general, young people in developing countries are far more concerned about climate change than those in developed countries. Higher awareness about climate change roughly correlates with less worry about it, the survey shows. Some 80% of German youths, for instance, say they have heard of the term “carbon footprint”, while just 18% are very concerned about the environment. In China, on the other hand, 21% have heard of carbon footprints and 64% are concerned. Unfettered economic ambitions Although they fear climate change, very few young people say they are prepared to rein in their economic ambitions to help protect the environment. Over 80% of those surveyed want to live in a big house and to travel the world. Although two-thirds are ready to make small changes in their lives to help the environment, such as composting or recycling, they are less willing when it comes to tougher lifestyle choices that could have the largest impact on climate change. Only one-fifth of respondents are prepared to take fewer longdistance holiday trips and just a third will change their diet to eat only locally grown food. “This could create a global flashpoint well before 2050 if these attitudes do not alter,” Professor Lord Anthony Giddens, a former director of the London School of Economics and Political Science, says in his introduction to the survey. Respondents remained optimistic, however, with 94% confident that “something” will be done to avoid the dangers of climate change. Most young people said that governments — especially in industrialised countries — were responsible for trying to avert environmental damage. SWP SHELL WORLD PHILIPPINES 9 1/20/09 5:55:13 PM FEATURE LIGHTBULB MOMENTS It is the small ideas, the series of ‘lightbulb’ moments at an individual level, that are providing the technologies in our industry that are changing the way we provide energy.” GREAT SOLUTIONS START WITH GREAT IDEAS People have them every day – bright ideas big and small. But as one American entrepreneur put it: Everyone who has ever taken a shower has had an idea. It’s the person who gets out of the shower, dries off, and does something about it that makes a difference. S hell Chief Technology Officer Jan van der Eijk says, new technologies start with a kernel of an idea that is brought to fruition. Sometimes they will work, sometimes they won’t. focused on meeting rising energy demand and curbing emissions. What is most important, says Van der Eijk, is that innovation is driven by a deep understanding of society’s needs and of the challenges the world faces today – for example, meeting the world’s growing demand for energy while reducing CO2 emissions. According to Van der Eijk, the world-scale projects the company is able to undertake are often down to the thousands of smaller technology solutions pursued, developed and combined every day: “It is the small ideas, the series of ‘lightbulb’ moments at an individual level, that are providing the technologies in our industry that are changing the way we provide energy.” And Shell is ‘walking the talk.’ It is the largest investor in R&D of any of the international oil companies (spending $1.2bn in 2007), and the scope of its technical portfolio is squarely People have them every day – bright ideas big and small. But as one American entrepreneur put it: “Everyone who has ever taken a shower has had an idea. It’s the person who gets out of the shower, dries off, and does something about it that makes a difference.” In this article Shell shares some of those ‘smaller’stories. A swellable toy dinosaur Work wasn’t on the mind of scientist Eric Cornelissen when he entered a San Francisco toy shop to find gifts for his nephew. But bright ideas can occur in the most unlikely of places, and Cornelissen’s came when he stumbled upon a box full of swellable toy dinosaurs that grew to five times their original size when immersed in water. The swelling rubber concept kicked off a train of thought in Cornelissen’s head that made him think of a use for this material that could help solve a growing problem for the oil industry: water seeping in to the well and mixing with the oil. This slows down production and causes extra work and cost as the two have to be separated at the surface. He thought that if this swellable rubber or ‘elastomer’ could be wrapped around well pipes, it would swell up on contact with water and prevent it from getting into the well oil. He was right, and the resulting technology – Expandable Zonal Inflow Profiler (EZIP) – is now being used in wells around the world, helping to boost production of valuable oil while leaving the water in the ground. C-fix and sulphur concrete While efficiencies and technologies such as carbon capture and storage are likely to lead to the greatest reductions in CO2-levels in the atmosphere, Shell scientists like Rini Reynhout haven’t stopped looking at other possibilities. Reynhout was instrumental in developing CFix – a clever technology which uses oil refinery residues as an alternative to cement, and is consequently helping to bring CO2 emissions down. C-Fix is produced from carbon-rich mineral oil residues that are a component in heavy fuel oils (for instance, the type used for large oceangoing vessels). The burning of this heavy fuel oil emits CO2. But now, instead of burning this by-product, it can be used to create the C-Fixbinding agent. The C-Fix binder is mixed with aggregates, sand and filler materials acting as an alternative to cement to produce concrete. In this way, just GREAT SOLUTIONS START WITH GREAT IDEAS one tonne of C-Fix prevents the emission of around 2.5 tonnes of CO2. It also helps lower other emissions such as sulphur dioxide, nitrous oxides and carbon monoxide. Shell has done something similar with sulphur too. Oil and gas fields are rich in sulphur. And with regulations requiring greater levels of sulphur to be removed from oil and gas to make cleaner transport fuels, there’s more and more of this left-over product to be dealt with. Adding it to fertilizers to promote plant growth has long been the traditional use, but Shell has developed a new use: sulphur concrete. Producing it emits less carbon dioxide than traditional concrete and no water is needed in mixing. Unlike normal concrete, it has a smooth, plastic-like surface that is easy to paint. It also sets quickly and can withstand acidic and salty conditions. Those properties, and the need for it to remain cool, make it ideal for waterworks such as sea barriers and locks which are now being tested in the Netherlands. Energy companies know they face a challenge convincing the building sectors to adopt these new products. “These are intrinsically conservative industries,” says Egbert Veldman, head of Shell Sulphur Solutions, which sells and transports sulphur, as well as developing new uses. “They need very significant proof and trials before agreeing to use new products.” Why fish don’t freeze By questioning why deep-sea fish did not freeze, Shell scientists Ulfert Klomp and Marc Anselme came up with a solution to keep oil and gas moving along pipelines in very low temperatures at the bottom of the ocean – critical when the world is looking for more energy. Along with other scientists in the oil and gas industr y, Klomp and Anselme had been working for some time on a way to better solve the problem of hydrate cr ystals blocking pipelines and damaging production facilities, particularly in deep-sea projects. But they’d had little success. “Then one day,” Klomp recalls, “Marc and I read an article in Nature magazine about certain fish species surviving in polar waters. Seawater freezes at -1.9°C, well below the temperature that fish should freeze. But they did not.” The article went on to report that researchers had found that the fish synthesise a protein, which attaches to any microscopic ice crystal as soon as one forms inside the fish. The protein covers the ice crystals to stop them acting as sites for further ice to grow.” If the new product takes hold, what was once seen as a by-product could become a valuable commodity. The fish protein theory led Klomp and Anselme to a chemical breakthrough in dealing with hydrate crystals. Injected into the oil and gas as it is extracted from the earth beneath the sea, the fish protein-inspired additive is helping to get more oil and gas from difficult deepsea areas. The energy challenge Van der Eijk says that in facing the energy challenge – delivering more energy, with less CO 2 – promoting an innovation culture is imperative: “Have an idea then make it happen, that’s the way forward.” SWP Source: The New Economy - Winter 2008 As energy problems become more challenging, we rely increasingly on human intelligence, new ideas and professional discipline to secure a responsible energy future. So, as Shell people, we think laterally about how to solve problems, we reject complacency and we have deep wells of optimism. And we do this to deliver genuine progress to our stakeholders. 10 SHELL WORLD PHILIPPINES Complete SWP 4.indd 10-11 SHELL WORLD PHILIPPINES 11 1/20/09 5:55:33 PM Quezon City honours Shell as good taxpayer COUNTRY ROUND-UP World-class Shell Unveiling of M/T Bitumen Solutions Centre “Mactan Island”opens in Batangas Pilipinas Shell’s 7th double hull tanker M/T “Mactan Island”, the newly built double hull tanker commissioned by Pilipinas Shell Petroleum Corporation (PSPC) to transport its oil products, was presented by its owner Islas Tankers Shipping Corporation during an unveiling ceremony held last October 8, 2008 at the Davao Room of the Sofitel Philippine Plaza. The momentous event was attended by significant personalities from government and the private sector. Pilipinas Shell Petroleum Corporation (PSPC) inaugurated its Bitumen Solutions Centre on September 2, 2008 at the Shell Tabangao Refinery in Batangas. The Shell Bitumen Solutions Centre is the first of its kind in the Philippines and its main purpose is to support the Shell Instapave System by providing services in emulsion testing, aggregate testing, and mixture design development. The presence of the centre in the country will ensure that road projects using Shell Instapave meet local requirements based on internationally accepted standards. Consistent with Shell’s high standard of safety, PSPC challenged the shipping corporation in 2006 to replace their single hull vessels with double hull tankers. Islas Tankers was more than confident to take on the challenge. In 2007, the Maritime Industry Authority (MARINA) issued Memorandum Circular 2007-001 that banned all single hull oil tankers and posed the double hull requirement for tankers carrying heavy- grade oil. This was strictly enforced to prevent oil spills that can severely damage the Philippine coastal areas. Through the years, Islas Tankers demonstrated a strong commitment to vessel safety and environment protection as evidenced by the company’s compliance with local and international shipping standards for quality, safety and security. Islas Tankers is recognised in the local tanker industry for introducing modern and IACS (International Association of Classification Societies Ltd.) -classed tankers. The Quezon City (QC) local government commended Pilipinas Shell Petroleum Corporation (PSPC) for being one of its top real property taxpayers for fiscal year 2007. The long-standing partnership between Islas Tankers and PSPC has spanned two decades, dating back to 1988 when PSPC entrusted the transport of its oil products to M/T “Manila Victory”, which was the first tanker the former purchased for Shell’s use in the country. The inauguration of the M/T “Mactan Island” marked the continuous partnership between the two corporations. “There are more than 60,000 business establishments and 400,000 real property owners in the city today. Their tax payments earned for the city the prestige and recognition of being the richest city in the country for the past five years. Without them, the massive infrastructure projects of the city will not be possible,“ said Mayor Belmonte. “With the taxpayers support, we intend to keep the record of Quezon City as the highest revenue earner in the country,” he added. “Our country deserves no less than brand new vessels. Having second hand reconditioned vessels should be put behind us. There is no reason why the Philippines should not have first class international standards in terms of vessel facilities,” said PSPC Chairman and President Edgar Chua in his speech. [Christine Guison] Celebrating its sixth year of recognising the contributions of business organisations to QC’s bustling economy, this annual awarding ceremony titled “QC Salutes Top Taxpayers” is now regarded as one of the most significant events in the city’s commerce and trade. [Jun Jay G. Jimenez] PSPC was one of the 51 companies honoured during the 69th Foundation Anniversary of Quezon City held on October 10, 2008 at the Grand Ballroom of the Crowne Plaza Galleria in Quezon City. Country Tax Manager Nigel Avila received the award for PSPC. Shower of discounts from Shell’s Pepeng Pasada Club Tricycle Operators and Drivers Association (TODA) members received a discount with each purchase of Shell fuels and lubricants during the holiday season. Shell Bitumen Technical Manager for the East Frits de Jonge said: “Shell Bitumen wants to show the industry that it is committed to introduce pavement systems to improve the road network in the country.” Aside from supporting Shell Instapave, the centre will continue its pursuit of introducing other breakthrough road building technologies and paving systems. Pilipinas Shell Petroleum Corporation’s (PSPC) Pepeng Pasada Club launched a discounting scheme for TODA members during the event dubbed “TODA-Bigay” held on October 20, 2008 at the Music Hall of SM Mall of Asia in Pasay City. The event is in partnership with the Department of Energy (DoE). “The government is urging its units to help fight poverty and improve the livelihood of the people. To the best of its abilities, the government is continuously improving its system for education, health, and social services,” said President Arroyo during her speech. She also announced the discount scheme that TODA members can avail of through the Pepeng Pasada Club. “We are thankful to Shell for establishing the Pepeng Pasada Club, which gives its members discounts for every purchase of Shell products,” the President added. “Shell is making a significant mark in the infrastructure and construction of public roads and the Shell Bitumen Solutions Centre will play a vital role,” said Shell Bitumen General Manager for Asia-Pacific Region Fred Funnell. “The centre will help in introducing cost-efficient paving technologies to construct highly durable farm-to-market roads. Building good and longer lasting road pavements is Shell’s way of contributing to nation building.” [Jun Jay Jimenez] President Gloria Macapagal Arroyo, DoE Secretary Angelo Reyes, and PSPC Chairman and President Edgar Chua led the celebration that launched the government’s social programmes, including Pepeng Pasada Club’s discount scheme, to benefit TODA members and their families. The discount scheme gives a Php1 per liter discount for Shell fuel products like Regular Mogas, Super Premium, Unleaded, and V-Power. There is also a price cut of Php 2 per liter for 2T lubricants and Php 5 per liter for Advance lubricants. The discount scheme ran from October 20 to December 31, 2008. 12 SHELL WORLD PHILIPPINES Complete SWP 4.indd 12-13 Tricycle drivers flash their Pepeng Pasada Club cards Chua announced that tricycle drivers and operators would benefit from their membership with Pepeng Pasada Club even after the end of the discount programme, with its reward points system and insurance benefits. “We assure all Pepeng Pasada Club members that Shell, together with the Department of Energy, will continue to think of ways to help tricycle drivers in improving their livelihood.” A total of 610 loyalty sites or gas stations nationwide gave discounts to TODA members: 172 in Metro Manila, 107 in North Luzon, 110 in South Luzon, 101 in the Visayas and 120 Mindanao. Around 2,000 TODA members came to witness the launching of the Pepeng Pasada discount scheme. [Jun Jay G. Jimenez] SHELL WORLD PHILIPPINES 13 1/20/09 5:55:40 PM Shell Advance awards winners of the “Advance to Prizes” promo Present at the awarding ceremonies were guests of honour Edward Go, President, MDAP (Motorcycle Dealers Association of the Philippines); Joseph Sison, President, MDPPA (Motorcycle Development Programmes Participants Association); Shell Lubricants Distributors and Lyndon Lumain, Shell Lubricants Cluster Marketing Manager for Lubricants. Philippines ready for Downstream-One, says global reps Shell Advance motorcycle oil, a cutting-edge quality product from Shell, lets you experience quicker response from your engine while giving maximum protection for your bike. Global Downstream-One programme representatives approved the business preparations of Shell Philippines at the Business Readiness Review I (BRR I) held last October 14-17, 2008. PMO Planner Alex Hernandez happily shared the praise report of global observers of BRR I. “Overall, the global counterparts scored the Philippines’ conduct of BRR I excellent. It was commended for its business engagement at the General Manager’s level in all CoB/Fs.” Shell executive presents energy scenarios in the Hawaiian-Philippine Co. luncheon In light of the change management, the BRR I was done innovatively by adding two activities on top of the usual review process. These were the Change Readiness Assessment Survey and the Focus Group Discussion or FGD. The FGD is a research activity in which a small group of people share their thoughts and opinions on a particular topic, in this case, the progress and preparation for implementing the Downstream-One programme. 14 SHELL WORLD PHILIPPINES Complete SWP 4.indd 14-15 Pilipinas Shell Petroleum Corporation (PSPC) participated in the awards luncheon staged by Hawaiian-Philippine Co. (HPCo.) to recognise its most efficient employees and cane suppliers on September 12, 2008 at the Executive Inn in Bacolod. After the presentation of awards, PSPC Vice President for Communications Roberto Kanapi talked about “Exploring Scenarios for Sustainable Energy Development”, which outlines the present state and future scenarios of energy demand all over the world and the rate of increase of carbon emissions in developing countries. 64 Shell ‘Gas Mo Bukas Ko’ Mindanao scholars graduate Sixty-four Shell Gas Mo Bukas Ko (GMBK) scholars bravely journeyed with one goal in mind: Mas malayo ang marating (To go further). On August 7, 2008, the scholars received their graduation certificates at The Royal Mandaya Hotel in Davao City. “We are ready to follow our dreams, reach greatness and do you proud,” said GMBK outstanding scholar Melito Deloso during the graduation rites. For six months, the scholars completed courses such as basic computer with hardware configuration, computer technician, electrical, and automotive servicing. The scholars were employed at Shell retail stations located in Pagadian, Surigao, Butuan, Cagayan de Oro, Bukidnon, Davao and General Santos while undertaking the GMBK scholarship programme. Shell retailers gave invaluable support by freeing up the scholars time to attend their classes and giving transportation allowances. Training partners in Mindanao include STI, TESDA, Surigao City Livelihood Training and Productivity Center, Irene B. Antonio Technical College, and SITE & Driving School. GMBK is a technical and vocational skills training programme offered to Shell station staff with the aim of enhancing their skills, to help them get better jobs and provide other livelihood opportunities to improve their income. The programme was initiated by the Association of Petroleum Shell Dealers, Inc. (APSDI) supported by Pilipinas Shell Petroleum Corporation, and managed by Pilipinas Shell Foundation, Inc. For GMBK’s 2nd batch, 42 GMBK scholars from Shell retail stations located in Zamboanga, Koronadal and Cagayan de Oro have been recruited. These young students show commitment and determination to pursue their dreams. [Ria Carina F. Comsti] During his presentation, Kanapi shared with the audience what Shell is doing to meet the energy challenge. One of the highlights of Kanapi’s presentation was on biofuels production and how it can help in reducing carbon emissions and improve energy security, which is related to the business of HPCo. He also highlighted Shell’s endevours in the responsible management of carbon emissions across its operations all over the world as part of the company’s commitment to sustainable development. “The survey reveals that line managers are the most important source of information on Downstream-One, which was validated in the FGD. Because of this, we are now more confident in pushing for our strategy of communicating our programme details through our line managers,” said Downstream-One Change & Engage Local Communications Advisor Suiee Suarez. The Philippines is now in the middle of the Downstream-One journey. The results of BRR1 provides reassurance to the local Downstream-One teams that previous efforts are now bearing fruit and that the country is on the right track for a successful Go-Live. [Tisha Timbang] Ducati and Suzuki motorcycles, and a trip to Malaysia to watch the MotoGP were the coveted prizes that gained the public’s interest. During the promotion, customers got a chance to win instant cash prizes plus join the raffle draw for every purchase of Shell Advance motorcycle oils. Shell Advance’s Advance to Prizes promo ran from May 1 to July 31, 2008. The promo winners included Carlito Rieza, Jr., Grand Prize winner of a Ducati Monster S2R100; and Rosario Bobby Eugenio, winner of a MotoGP Malaysia trip. Joselito R. Jose from Metro Manila, Ruben Guila from North Luzon, Lalaine Patriarca from South Luzon, Melanie Lastimosa from Visayas, and Concepcion Cerado from Mindanao were all winners of a Suzuki Shogun Pro125cc. Programme Director for Downstream-One Andrew Manley sums up some key points at the end of the BRR1 read out session. At the BRR I, global counterparts assessed the Philippines’ deployment progress, specifically the deliverables of various classes of business/functions (CoB/Fs). The short activity focused on the entire deploy, both streamline and change management, for a successful Go-Live in July 2009. Shell Advance’s successful nationwide promotional venture, Advance to Prizes, held its awarding ceremonies on October 20, 2008 at the Shell House lobby. Hawaiian Philippines Company (HPCo.) officers with Pilipinas Shell Vice President for Communications Bobby Kanapi (seated, 2nd from left) and Downstream Communications Manager Mylene Santos (standing, 4th from left) during the recognition and awards event Joining Kanapi at the luncheon were PSPC Downstream Communications Manager Mylene Santos and Commercial Fuels Account Manager Ed Capati. Hawaiian-Philippine Co. is one of the commercial fuels accounts of PSPC in Negros, Philippines. [Jun Jay G. Jimenez] Photo shows (top row) Davao dealers Albert Cameros, Allen Vega, Mareane Lu, Mario Avila and Linda Cameros, Pilipinas Shell Regional Manager Ricky Altonaga, Pilipinas Shell Chairman and President Edgar Chua, PSFI Executive Director Edgar Veron Cruz, Former General Manager for Retail Sales and Operations Sammy de Guzman, General Santos Dealer Ignacio Dumaran, Davao dealer Teodoro Cameros and PSFI Project Officer Ria Comsti; Bottom Row: Gas Mo Bukas Ko Batch 1 outstanding scholars Luther Neri, Ryan Pantinople, Benjamin Mosqueda, Jr., Narvin Monroid, Marlon Monroid, Melito Deloso and Ariel Ronulo (Not in picture: Jonald Budol and Cyril Von) SHELL WORLD PHILIPPINES 15 1/20/09 5:55:48 PM a great challenge.” DOWNSTREAM-ONE FEATURE LEADING THE CHANGE AGENTS THROUGH COMMUNICATION DOWNSTREAM-ONE COMMUNICATIONS LEAD FOR THE PHILIPPINES SUIEE SUAREZ TALKS ABOUT THE CRUCIAL ROLE OF EFFECTIVE COMMUNICATIONS IN MANAGING CHANGE We need to constantly improve our communications, as this is crucial to the change management process.” By TISHA F. TIMBANG I magine passing a message to over a thousand people. Now this time, imagine the job of attending all goings-on in the company to keep yourself posted on a wide array of topics related to a global milestone programme and making sure that all people are on the same page, at the same time. What a tough job, right? But that’s what Change & Engage (C&E) Local Communications Adviser Ronald “Suiee” Suarez has been doing since he joined the Philippine Change & Engage Team last January 2008. As lead for Downstream-One communications in the Philippines, Suiee makes sure he is aware of all that is happening in preparation for the Downstream-One Programme as it goes live on the 1st of July 2009, and communicates all these change preparations to Shell staff. Communication plays a crucial part in any change journey. For the Downstream-One programme, communication helps manage changes relating to the implementation of Global Systems, Applications and Products in Data Processing (GSAP), and aids in process preparations such as training, organisation design and mobilisation of leaders for a successful Go-Live. The task is huge but Suiee remains undaunted. His confidence is based on the group of enthusiastic and able experts that has past experience from Go-Live implementations. But his confidence does not make him oblivious of the challenges as he leads the Downstream-One Philippines Communications Network. One of the challenges for communications is to create a clear message that is understandable and relatable to all employees. His 13-year employment with Shell makes it easy for him to craft a suitable message for employees. Over the years, however, Suiee shared that Shell people have changed, becoming very diverse and dispersed over a large geographical area. “The challenge is how to create a crystal clear and compelling message for communications that takes into account the different nuances of this diverse audience,” explains Suiee. Integrating all programme components and scopes comes second on the list. Because communication plans constantly evolve and adjust to the requirements of various businesses, the Communications Network has to find ways to make things simpler, communicate the changes effectively and manage all touch points that cut across different businesses and functions. The third and last challenge in communicating change is motivating people through effective communications. “Fuelling the flames of motivation requires timely, creative, and compelling messages from our team. As the popular saying goes, ‘seek first to understand than to be understood’. In-depth understanding of the audience is truly important to ensure success in motivation,” Suiee points out. Since the launch of Downstream-One, the strong leadership support of top management has always been visible. Their consistent presence in milestone activities is already motivating. With such solid support, resistance to change is definitely mitigated. The extent of this strong leadership support was quantified in the Change Readiness Survey conducted last September, where the metrics of Leadership, Understanding & Enablement came out as strong points for the Philippines. “It is now up to the Communications Network to leverage or build upon these strengths to deliver communications, to convince and to motivate staff. We need to constantly improve our communications, as this is crucial to the change management process,” concludes Suiee. SWP Suiee Suarez 16 SHELL WORLD PHILIPPINES Complete SWP 4.indd 16-17 Introducing the Philippine Comms Network The Philippines Communications (Comms) Network is a group of people assembled to communicate the changes that will happen as a result of Downstream-One. They come from different backgrounds and represent a full array of businesses and functions in PSPC. Despite the large number of the group, the network is growing as other smaller functions are being invited and added to ensure that there is improved and expanded involvement throughout the Shell companies in the country. Communications is one of the things that envelope the entire project management and change management aspects of Downstream-One. As such, the challenges for the Comms Network are significant. Diversity and geography make their task doubly hard since integration and coordination must always be maintained throughout the journey. Aside from leading the businesses or functions in the delivery of information, the members of the Comms Network also gather very important feedback from the various stakeholders - both internal and external, that they interact with. By knowing their audience better, the Comms Network is able to finetune its choice of channels and the mix of media in order to inform, convince and motivate. Thankfully, each Comms Focal has the benefit of guidance coming from Global Comms counterparts who provide direction, useful tips and templates to copy, adapt and improve. It is all part of making sure that all the global best practices from previous Downstream-One implementations are put to good use, in a sustainable and repeatable way. Surely we will be leaving our mark in the global best practices, and hope that succeeding implementations will do the same, by building upon our successes. (Suiee Suarez) Members of the Downstream-One Philippines Comms Network SHELL WORLD PHILIPPINES 17 1/20/09 5:56:15 PM FEATURES TOWARDS THE GOLDEN YEAR: DEFINING THE GRAVITY OF FILIPINO ARTISTRY CELEBRATING 41 YEARS OF THE SHELL NATIONAL STUDENTS ART COMPETITION For all of you, it has been a long journey. We value your participation in this competition and congratulate you for your persistence and dedication to utilise your unique gift for the visual arts.” By JUN JAY G. JIMENEZ V isual arts mirror the attitude of the times. An artist’s interpretation of life around him takes shape in a painting with its dynamic strokes of colours to create figures or intricate combination of lines and grooves to mold a sculpture. These masterpieces tell stories not only of the artist but also of the world in which he or she lives, a window into their souls and a reflection of the current times. With the intense journey artists go through to bring ideas into life and give birth to outstanding creations for us to appreciate and admire, it is only but fitting to recognise their work. Apolinario Quirap, Jr. Trisha Maria Irene Doctor For more than four decades now, the Shell National Students Art Competition (NSAC) has tracked the trajectory of artistic talent in the country, producing many of the country’s renowned artists. Since its inception in 1951, the annual arts contest has served as a social barometer where the artworks of the youth have explored a plethora of meaningful societal issues such as unemployment, poverty, and youth identity issues. On its 41st year of producing outstanding artists, the NSAC rose to the challenge of attracting thousands of student artists from all over the country to participate and showcase their artistic creations. Year after year, the competition continues to fortify its position in the art world as the longest running arts competition that serves as a venue for promising young artists to express their ideas through their creations. In a display of vivid colours and fascinating figures, a record-setting 1,229 entries competed for top awards in the oil/acrylic, watercolour, sculpture, and digital art categories of this annual competition sponsored by Shell in the Philippines. The awarding ceremony was held on October 3, 2008 at the Ayala Museum in Makati City. The brains behind the enchanting creations Depicting a person’s plight in realising his goals, 1st year Technological University of the Philippines Fine Arts student Jhemuel Salvador 18 SHELL WORLD PHILIPPINES Complete SWP 4.indd 18-19 created a realism type of art titled “Pagmulat sa Pahimakas” that earned him top plum in the NSAC Oil/Acrylic category. “My entry shows the reality in each one of us. It is about the obstacles that prevent us from achieving our dreams. I experienced it myself. My entry shows who I am,” declares Jhemuel. but I had to shift to Advertising and Public Relations because my family could no longer afford the high cost of an Architecture education,” shares Rommel. Eventually, however, he decided to go back to pursuing his passion, this time taking up Fine Arts. “I am on my fourth year now and I have learned a lot of techniques from my school. I am also happy with the support of my teachers,” says Rommel. Jhemuel shared that his life before the competition was beset with challenges. Some people around him were averse to his decision of enrolling in Fine Arts. “They were telling me that taking Fine Arts for a course would get me nowhere. But winning in this competition encouraged me more to pursue my dream of becoming an artist and I will prove to them that I made the right choice,” says Jhemuel with a fervent spirit. Rommel is vibrant about life. His credo is to continue doing what he loves doing despite the challenges. “I follow my heart when it comes to the arts. But in a practical sense, having an alternative source of income is the best way for me to support my love for the arts.” On the side, Rommel ventures into photography for livelihood. “After college, I want to be an artist and photographer as well.” Despite his youth, Jhemuel expressed his thoughts about his craft with maturity. “Believe in yourself and you can accomplish a lot in life. I want to be a source of encouragement for other artists. I am using art to share my experiences in life and I am happy with the thought that what I am doing serves as an inspiration for others.” In his journey as an artist, Rommel shares that visual artists Juvenal Sanso and Toti Cierda inspire him. “Sanso’s experience as an artist inspires me to hone my skills further.” Last year, Rommel won honourable mention in the Watercolour category. He hit it big this year by winning first place in the same category. He believes that life has so much to offer. “In the face of obstacles, an artist must have the determination to continue creating artworks and believe that he can contribute to the growth of Philippine arts.” Always wearing a big smile on his face, Rommel gaily thanked his mother and all his friends for the support they have showered him throughout the competition. At age 16, Jhemuel is the youngest in a brood of five. He is full of gratitude for his eldest brother’s support for his education. “I am dedicating all my achievements to him for he has given me all the support. He encourages me to paint and that motivates me to do my best as an artist.” With his overwhelming fortitude, Jhemuel says, “More than the prize, winning in this competition motivates me to continue what I have started despite all the odds.” Twenty-five year old Rommel Ramota of Polytechnic University of the Philippines has a similar story to share. When he stepped into college, he enrolled in an architecture course. Halfway through his course, Rommel was forced to give up Architecture. “I love Architecture, Copping first prize in the Sculpture category with his surreal depiction of wanton abuse of nature through his entry titled “Saved Me from Distinction”, Painting major Apolonio Quirap, Jr. from the Ford Academy of Arts in Davao City felt so humbled by his award. “This is my first time to join NSAC and I am so blessed to have won first prize,” says Apolonio. He has been doing Sculpture for three years now. Apolonio is looking at staging a one-man show in the near future. In sharing insights about his entry, Apolonio declares that his entry is a tribute to all the mining sites and mountains in the country. “I want people to realise the importance of the environment in our lives. Nature is deteriorating and we all have the responsibility to preserve it for future generations to enjoy.” Twenty-three year old Apolonio dedicates his award to his fellow artists in Mindanao for promoting ethnicity through their creations. Early next year, Apolonio will be a full-pledged father with the birth of his baby girl. He is setting aside part of his prize money for this big day in his life. “Having a family while studying is challenging, but I am happy with how my life unfolds now,” says Apolonio with a contented smile. Showing that her artistic strength is on Digital Arts, nineteen-year old Fine Arts major Trisha Maria Irene Doctor of the University of the Philippines bagged first prize for her entry titled “Break Your Silence”. Her cubism-styled art is an illustration of her experiences in life. “I have seen situations where people did not express what they have in their minds. I want to encourage people to speak up for themselves when they see my artwork. Speaking up can save lives,” says Trisha with a fiery spirit. ceremonies were equally renowned artists Augusto Albor, Reggie Yuson, Angel Cacnio, and Nestor Vinluan. “Every year, we see a lot of young talents. We believe that it is important that we not only hone the minds of the youth, but also their souls. And the artworks we see now are expressions of what they have in their souls,” said Shell companies in the Philippines Country Chairman Edgar Chua in his message to the NSAC finalists. “For all of you, it has been a long journey. We value your participation in this competition and congratulate you for your persistence and dedication to utilise your unique gift for the visual arts,” Chua added. The awards night concluded with a dazzle, but what made it more meaningful were the admirable tales of the student artists, captured in colourful and significant shapes, lines, and forms --- giving more substance and value to arts while revealing its relevance to our lives. SWP Trisha shares that her mom is her inspiration. “What I have become now, I owe it to my mother. I have witnessed all her sacrifices to raise us decently.” Trisha is the youngest of three siblings. “My mom is the only one working in our family. And for all her efforts, I dedicate my success,” says teary-eyed Trisha. A bold step to 50 years Through the years, the Shell National Students Art Competition has contributed to Filipino art by producing promising talents whose artistic excellence and determination carved an esteemed place for Philippine arts in the global arts arena. Now on its first year to complete another decade towards celebrating 50 golden years of artistic excellence, NSAC invited internationallyacclaimed artist Señor Juvenal Sanso to inspire up-and-coming artists with chronicles of his journey as a budding student artist in the 50s when he won third place in the Shell Arts competition, his artistic explorations and adventures abroad, and how his dedication to his craft led him to become one of the most prominent figures in modern day visual arts. Together with Sanso during the awarding Rommel Ramota Jhemuel Salvador SHELL WORLD PHILIPPINES 19 1/20/09 5:56:54 PM COVER STORY THE ROUTE TO 2050: Scenarios for the energy-driven world By JUN JAY G. JIMENEZ and SANKIE G. SIMBULAN Shell describes the evolution of the energy landscape in the coming years and the challenges that the rest of the world will have to face as encapsulated in two scenarios, Scramble and Blueprints. T he choices we make today will determine the kind of world we will be living in mid-century. Shell presents two possible energy scenarios, or two different paths the world can take, between now and 2050. These scenarios provide alternative views of our distant tomorrow, shaped by our present, collective moment-by-moment decisions. For 40 years now, Shell has used scenarios as a strategic tool to help prepare for uncertain futures. These scenarios aid in exploring possible developments decades ahead and provide channels to test strategies against those potential developments. leading to revolutionary policies and strategies that respond quickly to the necessary changes that must be done today to ensure a responsible energy future. Dr. Khong visited Manila in November 2008 as speaker of the “Shell Energy Scenarios to 2050” forum held at the Mandarin Oriental Manila, Asian Institute of Management and Shell House in Makati, where he engaged stakeholders from government, non-government organisations, media, academe and the business sector on Scramble and Blueprints. Scramble is a reactive scenario, where nations have to be hit on the head with massive climate shocks before they eventually respond. People experience a painful transition after going through a terribly jerky path. modellers built a very detailed supply-demand model and linked it to a climate change model developed by a group of climate change scientists at the Massachusetts Institute of Technology (MIT), a leading research university devoted to the advancement of knowledge in science and technology. This synergism yielded a promising outcome that brought in our midst these two scenarios, which give us indications of how the energy world would transform from now until year 2050. “The energy system does not change overnight. We need to look fifty years or so ahead in order to see the changes that stem from the actions we take today,” explains Dr. Khong. The global energy system sits at the nexus of some of the deepest dilemmas of our times: In his lectures in various countries, Dr. Khong prosperity versus poverty, globalisation versus gives an overview of the energy mix today and security, and growth versus the how it will evolve mid-century, given environment. Urgent action is needed the impacts of factors like population since the choices we make in the next growth and economic prosperity. Dr. five years will be critical in determining also presented a chart that The only relevant questions about the future Khong the route we will take towards the next shows time frames for developing are those where we succeed from shifting the energy sources, which is dependent half-century. the growth rate in developing question from: Whether something will happen on new technologies. to what would we do if it did happen?” An era that calls for revolutionary change “We cannot predict how the future With the global population rapidly might go, all we can say is that there - Arie de Geus, former Shell Corporate growing, economic prosperity rising are a number of different possibilities. Planning Director steadily and demand for energy These scenarios make us resilient to increasing exponentially, the world is In Blueprints, the world goes through a all possibilities we can envisage and are tools compelled to look for ways to effectively deal smoother path because it is a preemptive rather that help prepare us for the major changes with the energy challenge of delivering more than a reactive scenario. The energy challenge ahead,” says Dr. Khong on the practical use of energy with less carbon dioxide (CO2) of providing more, secure and responsible energy scenarios. emissions, a significant contributor to global energy is addressed sooner, making the warming. This means a sweeping move to transition less painful. In describing the two different future possibilities, discover and develop new technologies to Dr. Khong first laid down current realities, reduce carbon footprint from energy “The question is, can we trust people to have the summarised in three hard truths: a surge in the operations, and the search for cleaner energy foresight of the consequences of their actions? world’s energy demand, a constraint in supply, sources to save the world from degradation. In the Blueprints world, people do have and an increase in environment stresses. The world now faces critical choices over how foresight. Political leaders get their act together. the global energy system will develop over the Governments come up with a concrete plan and “The demand for energy rises as the global next fifty years and how to address the clear timetable to arrive at a transformative energy population continues to grow. In a fifty-year and present danger of climate change. time span and assuming that economic landscape,” says Dr. Khong. growth carries on at the rate of 3 to 4 percent Dr. Cho Khong, Chief Political Analyst in the Juxtaposing two scenarios: per year on the average, global energy demand Global Business Environment team of Shell Scramble and Blueprints will double and energy supply will be International, has been traveling extensively Looking forward to decades into the future, constricted,” he said. He noted that the throughout the globe to present Scramble and Shell as an energy leader strengthens its business availability of conventional oil and gas that Blueprints, two different energy scenarios with sound strategies. Dr. Khong belongs to are extractable at current technology and envisioned by Shell. These scenarios provide a Shell’s team of scenario planners. Within this conditions has become increasingly restricted, useful context for debate, with the hope of scenario planning team, a sub-team of energy and will continue to tighten. 20 SHELL WORLD PHILIPPINES Complete SWP 4.indd 20-21 SHELL SHELLWORLD WORLDPHILIPPINES PHILIPPINES21 21 1/20/09 5:57:07 PM COVER STORY In facing these challenges, a profound shift to efficient use of energy is essential to ensure a sustainable energy future. Energy transitions will be taking place and is focused on addressing reduction of emissions in the atmosphere and the efficient use and conservation of energy. “The energy industry as a whole is waking up to the scale of transition that is required and Shell is at the forefront of that transition,” mentions Dr. Khong. Further describing the difference between the two future energy settings, Dr. Khong says that in the Scramble scenario, actions on energy and climate change are delayed. It is a world of energy nationalism and reactive change. “Governments will be very concerned about energy security and will rush to develop their own energy sources. In this world, trade is constricted. Governments will scramble to seek preferential access to energy sources just to ensure their own energy security, and will compete increasingly with each other for access,” he expressed. According to Dr. Khong, even if the transition is eventually made in this scenario, it would still be at a higher cost. “In Scramble, climate shocks will hit. At the end of this scenario, the results of the work with MIT give us a level of carbon and other greenhouse gas pollutants in the air of over 1,000 ppmv (parts per million by volume) CO2 equivalent.” In a Blueprints world, on the other hand, there is accelerated change as governments share common interests, forming coalitions to ensure energy sustainability. The global economy is transformed and progressive with the presence of a revolutionised transport system like electric vehicles and hybrid transport systems. “In Blueprints, carbon emissions are significantly lower than in Scramble. Blueprints will lead to a transformed energy landscape, though it is hugely challenging for the energy industry as it is constituted today and for oil companies as they are shaped today,” he said. Complete SWP 4.indd 22-23 “Of the two scenarios, the Blueprints approach would clearly be in the world’s best interests; and we are actively encouraging governments to help build an understanding of today’s energy reality, the facts around future supply and demand, and the need for a framework within which companies can operate,” emphasises Dr. Khong. A Blueprints world Building scenarios helps Shell in exploring possibilities and strategising effectively for the future. In building scenarios, Shell does not normally take a position on which scenario it prefers. However, in the case of its new energy scenarios, Shell is clear that it prefers the better Blueprints “The Blueprints scenario seems to be a better way to go if we think about the future of our planet, if we think about our children and grandchildren,” concludes Dr. Khong. SWP To help think about the future of energy, Shell developed two scenarios that describe alternative ways it may develop. These scenarios show two possible routes: one, Scramble, driven by fears over energy security and short term reactions resulting in a lot of turbulence and volatility in 22 SHELL WORLD PHILIPPINES approach of anticipating and taking action on the energy challenge, because it gives a better result for energy efficiency and also for responding to the challenge of climate change. Shell is therefore urging policy decisions that will move the world in this direction. Urgent action is needed since the choices made in the next five years will be critical in determining the route the world will take over the next half-century. Explaining that “business as usual” is no longer possible in dealing with future challenges, Dr. Khong points out that, at this time, Blueprints is a better choice to guide us in coming up with tangible solutions to the energy problems that we currently face. Never before has humanity faced such a challenging outlook for energy and the planet. This can be summed up in five words: “more energy, less carbon dioxide”. Dr. Cho Khong has over 10 years of experience in leading and participating in country scenario projects. He tracks politics and international relations and is particularly interested in issues of political development in Asia and the Middle East. He is presently the Chief Political Analyst in the Global Business Environment Team of Shell International. the energy system and severe climate change. The other, Blueprints, sees anticipation of challenges and critical choices made early to respond to challenges, this results in a more stable energy system and much better environmental outcomes. Shell prefers the better Blueprints approach of anticipating and taking action on the energy challenge, and is urging policy decisions that will move the world in this direction. Urgent action is needed since the choices made in the next five years will be critical in determining the route we will take over the next half-century. To find out more about the Shell Energy Scenarios to 2050, visit www.shell.com/scenarios/ CO2 STRATEGY: MORE ENERGY, LESS CARBON DIOXIDE 3 Hard truths 2 Scenarios 1 Preferred approach 6 Reduction pathways 5 Policy objectives 32165 32 3 21 2 165 1. Surge in energy use 2. Supply will struggle to keep pace 3. Environmental stresses are increasing 1. Scramble – governments are reactive in dealing with the energy challenge, and focus on supplyside measures. Greenhouse gas emissions are not seriously addressed until extreme weather events and supply crunches trigger knee-jerk, politically-driven responses. Eventually, a meaningful and large-scale transformation of the energy system does take place, but it is late and has expensive consequences extending beyond 2050. 2. Blueprints – growing local actions address energy and environmental challenges; they come together to build new coalitions of interest which put political pressure on governments to act on climate change and on energy issues, and which lay the foundations for “big picture” action. A group of key countries gets together to engage in emissions trading, setting a price for carbon, and this carbon trading framework gradually expands, encouraging the development of clean energy technologies. The end result is a world “increasingly of electrons rather than molecules”, where economic growth no longer mainly relies on an increase in the use of fossil fuels, and with lower CO2 emissions. We will play a part in 1. ‘Cap and trade’ enabling a Blueprints systems approach by working on 2. Clear incentives for six reduction pathways: CO2 Capture and Blueprints approach 1. Increasing our own Storage offers the best hope for efficiency 3. Credible targets for 2. Establishing capability in a sustainable future. renewables sources Carbon Capture and in our energy supply Storage (CCS) 4. Measures in the 3. Research and transport sector development into 5. Robust energy technologies that efficiency standards increase efficiency and reduce emissions for buildings and 4. Developing low CO2 appliances sources of energy 5. Helping our customers use less energy and emit less CO2 6. Working with governments and advocating more effective CO2 regulation SHELL WORLD PHILIPPINES 23 1/20/09 5:57:32 PM SUSTAINABLE DEVELOPMENT IN ACTION Thro ugh ex posure to si mul farm life, th e SAK A pr og at ed trai ns rural ramm e outbe co me m od of-s ch ool yout hs to er n-day farm er s. They ar e al so taug ht m on crop pr od od er n te chni ques uction to im prov e farm produc tiv ity CHAPTER ONE SUSTAINABLE DEVELOPMENT MANAGER CHITO MANIAGO TALKS ABOUT HIS THOUGHTS ON SHELL’S SOCIAL INVESTMENTS, VOLUNTEERISM EFFORTS AND THE POWER OF WORKING TOGETHER TO DELIVER A SUSTAINABLE FUTURE To help reve rse the destru ction of Mindoro’s ec osystem, the biodiversity conser vation programme will create a foundation th at will operat e a worldclass regene ration and breeding ce nter for thre atened spec ies To control an d totally erad icate malaria Kilusang Ligt by 2020, as Malaria di insecticide tre stributes long ated nets that lasting kill mosquito es on contac t By CHITO S. MANIAGO “I want to become the President of the Philippines!” I remember this was my standard introductory line during school openings when I was still in grade school. The teacher would usually ask each student to stand in front of the class, say his/her name, favourite subject, favourite color and, of course, life ambition. After the introductions, it was usually the case that I would end up being elected as class president since my peers were awed by the fact that I actually intended to become the President of our country one day. Being the class president naturally entailed a lot of responsibilities, such as being the leader in maintaining order in the classroom, whether it meant writing down the names of ‘noisy’ students on the blackboard, or reminding everybody to behave properly. It also meant always being the initiator in the collection of canned goods, noodles and piles of dailies from my classmates for the school’s typhoon relief operations or charity newspaper drives. was during the launch of the Shell Flower Terraces at the La Mesa Ecopark in Quezon City. I was then the Project Manager of the initiative, working for the Bantay Kalikasan Programme of the ABS-CBN Foundation. I was struck by the utmost simplicity and demeanour of the Shell leaders present during the event, such as Country Chairman Edgar Chua, Vice President for Communications Bobby Kanapi, former Sustainable Development Manager and now Downstream Communications Manager Mylene Santos and other Shell executives. Mr. Chua’s message to the audience gathered at the park left an imprint in me. He said that Shell ‘believes in the power of synergy to make things happen… synergy among the public, private and nongovernmental organisations.’ He also said that Shell believes that the only way to do good business is to adhere to Sustainable Development and be a good neighbour. Little did I know that three years later, I would actually be speaking and living by the same set of principles. I felt good then. I knew that, in my own simple way, I was making a difference. We at Shell have adopted the SD definition of the United Nations’ Brundtland Commission to reflect our own aspirations, “meeting the needs of the present generation without compromising the ability of future generations to meet their own needs.” We adhere to this by observing and implementing the ‘three-legged stool’ approach, the three legs pertaining to the social (people), economic (operations) and environmental (planet) aspects of our business. Our approach encompasses CSR or Corporate Social Responsibility, as we believe that in order to do well to others, we need to clean up our own ‘backyards’ first, and then reach out to our communities. We need to make sure that our portfolio and products would live up to global standards and contribute to our goal of investing in responsible energy. Our operations prioritise the health and safety of everyone, the protection of the environment by managing our emissions and spills, and business ethics by promoting zero tolerance on bribery and corruption. Finally, we do Social Performance (SP), which is defined as “the way we manage the impacts of our business on the communities and societies in which we operate.” How well we manage these impacts affects the well being of our neighbours and Fast forward twenty years later. I have been given the privilege of assuming a new and challenging role – that of managing the Sustainable Development (SD) portfolio of the Shell companies in the Philippines (SciP). While my grade school class may be miniscule compared to the magnitude of an organisation like Shell, somehow the feeling is the same. Through Shell, I know that I will be able to serve and indeed make a difference in the lives of others in an even greater capacity. My predecessor in this role spent five years reaffirming the company’s stand and thrusts towards SD. I read her SD in Action column before I wrote mine and was inspired when she wrote, “I will always consider my SD stint as time very well spent, and has been, so far, my most enriching experience.” I know that I have very large shoes to fill, but I am eagerly taking on the challenge as a perfect opportunity to contribute and grow. Walking the talk The first time I felt the sincerity of Shell in truly reaching out to communities and organisations 24 SHELL WORLD PHILIPPINES Complete SWP 4.indd 24-25 ultimately our business. As part of our social performance commitment, we run social investment programmes in both our downstream and upstream businesses in various areas such as Pandacan, Batangas, Palawan, Pasacao, Bacolod, Tagbilaran, Tacloban and Oriental Mindoro. The Pilipinas Shell Foundation, Inc. (PSFI) and Malampaya Foundation, Inc. (MFI) are implementingtheseprogrammes together with various partners and collaborators. Forging ahead One of the items I aim to do in my capacity as the new SD gatekeeper is to launch an SD roadshow this year entitled: The SD 101 Talk Series 2009 – SciP Stories on Sustainable Development. This series of talks is imperative as it further educates Shell staff on what SD is all about and hopefully brings forth a deeper appreciation of our SD Programmes. The series would include the various SP Programmes, Corporate Youth Programmes, and the Social Investments (SIs) we have in SciP. SIs are strategic initiatives for us and are defined as voluntary contributions aligned with long-term business goals that assist community organisations to achieve their goals. The SD road show will bring to Shell’s main offices our partners and collaborators such as representatives from Gawad Kalinga and Bantay Kalikasan; Wesley So and other Grandmasters of our Shell Active Chess competition; Juvenal Sanso, Nestor Olarte Vinluan and other acclaimed artists who were products of our longrunning Shell Art competition; Karen Agabin, Daday de Leon and Janot Barretto who are among our SD champions in various Shell locations; Luke Esteban of the Malampaya Foundation, Edgar Veron Cruz of the Pilipinas Shell Foundation and many more. It is praiseworthy to say that our Social Investments have paved the way for Shell staff to participate as volunteers in various events. Close to two hundred Shell employees regularly build houses for the communities of Gawad Kalinga. Pag-asa (Hop e) Philippine Ea is one of the two gles that Sh ell has adopted; th e other one is Magiting Shell staff pa rticipate in the GK Build in two of its GK Villag es Batangas City in : Libjo and Ambulo ng Shell aims to aid the relie f efforts and our calamity rehabilitatio -striken bret n programm hren in colla Foundation, es for boration with Malampaya the Pilipinas Coordinatio Fo undation, m Shell n Team (CCT) em be rs of the Country , non-govern ment organi private and sations and public institu other tions Our adoption of close to fifty hectares at the La Mesa Watershed gave our staff the chance to plant thousands of trees at the denuded expanse. The Children’s Hour Campaign urges the Shell community to donate an amount equal to one hour of their salary every year for various programmes centered on youth education. These campaigns were all spearheaded by Project Malasakit. Another active volunteer group that has gained popular support from SciP employees over the years is Project Better World (PBW) Philppines. PBW supports various external volunteer opportunities which, despite not emanating from our Social Investments, are very much aligned with our goal of being a good neighbour to the communities where we operate. PBW has organised coastal clean-ups, visits to pediatrics wards, tutorials for young underprivileged children and many more. The network is led by volunteers from Shell Philippines Exploration. The third volunteer avenue in SciP is the Shell ROPE or Relief Operations Team, complementing the rehabilitation efforts of PSFI and MFI in calamity-stricken areas. This year, we have launched a successful relief operations campaign, the ‘Call for Help: Typhoon Frank Victims’, calling on all SciP staff to help and donate in cash or in kind to the thousands left homeless by the devastating typhoon. Recently, we clustered all of the three groups under the SciP “Volunteerism Circles or VOICES” umbrella. This would promote greater cooperation and alignment among the three networks and further strategise their activities with our business goals and operations. Volunteer efforts from the Batangas refinery and PSPC depots nationwide were likewise recognised during the recently concluded SciP Volunteers’ Week with the theme: I am a Volunteer! I am a Shell Volunteer! I heard from our Country Chairman three years ago that Shell believes in the power of synergy. After working for almost one year in the SD unit of Shell, I am proud to add that we do not only believe in synergy, we actually live and The La Mesa Tree Plantin g in Ecopark give s SciP staf f the opportunity to demonstra te their commitm ent to environmen t preser vatio n breathe it. We at Shell should take pride in the fact that we all take Sustainable Development seriously. We take it to heart and make it happen. And when I say all, I am honoured to say that it’s really all of us, from the staff to the ranks of our senior leaders. Now that, for me, is a good start. SWP Chito Maniago was formerly the head for Internal Communications of Shell Philippines Exploration B.V. (SPEX). He is now the Sustainable Development Manager of the Shell companies in the Philippines. Prior to joining Shell, Chito worked for the Luntiang Pilipinas Foundation of Sen. Loren Legarda, the ABS-CBN Foundation, and became a TV Reporter for ABS-CBN News. SHELL WORLD PHILIPPINES 25 1/20/09 5:58:38 PM FEATURE YOU REAP WHAT YOU SOW HOW A LITTLE EDUCATION HAS HELPED SMALL FARMERS IN EL NIDO, PALAWAN TURN THEIR PLOTS OF LAND INTO MODELS OF SUSTAINABLE PRACTICE By ALYA B. HONASAN for Shell Philippines Exploration B.V. I lluminated by the warm afternoon sunlight, Elenita “Angga” Timbancaya crouches down between rows of stringbeans and eggplants planted on the farm she and husband Clifford tend in Barangay CorongCorong, in the town of El Nido, northern Palawan. A few snips of her pruning shears, and she comes away with a handful of dainty white asters, ornamental flowers she tried to plant amongst the vegetables. “Look at these,” she says in obvious delight at the success of her experiment. “They’re so pretty. And they’re something else we can earn from.” And so far, St. John, the Timbancayas’ three-hectare farm, has been one big and rewarding experiment that has proven how enlightened cultivation can indeed be profitable, while completely respecting the natural cycle of life. Interestingly enough, the Timbancayas have had no previous experience in farming. Clifford is a former government official who served three terms as barangay (village) captain and sat on the municipal board, while Angga, a sociology graduate, helped run John Clifford’s, the popular restaurant that Clifford’s father had opened. Owning a farm had always been a dream, however, and the couple planted vegetables and raised a few pigs in the backyard of the house they share with their three children in El Nido town. In 2005, they purchased three hectares that remained idle for some time, as the couple was preoccupied with work. “This was just a jungle,” Angga recalls of the land, embraced by hills and traced by a clear stream. In 2007, Angga signed up for a week-long seminar on Integrated Farming Bio-Systems (IFBS), made possible by the Malampaya Joint Venture partners Shell Philippines Exploration, Chevron Malampaya, and Philippine National Oil Company-Exploration Corporation (PNOC-EC) through the new Malampaya Foundation, Inc. (MFI), in partnership with Pilipinas Shell Foundation, Inc. (PSFI). The IFBS programme, which PSFI has been conducting nationwide since 1985, spreads the gospel of organic farming, educating farmers on farming methods that are environmentally sound as well as systematic and market-friendly, allowing them to maximise resources to increase yield, without damage to the land and all the creatures that depend on it. As envisioned by the Malampaya Joint Venture partners, the IFBS programme also contributes to the bigger goal of sustainable social development for communities where Malampaya operates. So far, MFI has benefited more than 800 farmers like the Timbancayas in the province of Palawan through the IFBS programme. “There’s a correct process to farming,” says Clifford, who shared in both Angga’s knowledge and her enthusiasm. “We learned how to prepare the land. We learned how to make compost for natural fertiliser, and how to prepare the soil so that the seedlings stay healthy.” They learned which crops could best co-exist with others, thereby doubling or tripling a hectare’s yield in the process. The Timbancayas began by planting cucumber, string beans, and squash. The land was tilled, dried in the sun, and turned again. Soil for the seedlings was first heated in a giant pan to kill parasites and keep the grains loose, allowing for easy relocation of the seedlings without damage to their fragile roots. Meanwhile, grass, leaves, and the manure of pigs that had also been relocated from the Timbanacayas’ home to the farm — and which were fed with surplus vegetables from the farm itself — were mixed into a healthy compost. The rich homemade fertiliser was further reinforced with bat guano and boosted with a fungal inoculant that hastened the decomposition process, a procedure Angga learned from the IFBS seminar. The plants were then watered by hand from nearby natural sources. “We were neophytes,” Angga recalls. “We learned by doing, and by asking questions from people who knew.” Clifford and Elenita at their St. John Farm 26 SHELL WORLD PHILIPPINES Complete SWP 4.indd 26-27 Within a few months, the couple was pleasantly surprised with their first abundant harvest, grown from seedlings they had planted on a single hectare and tended to and watered themselves, with help from a few farm hands. “I remember when we first harvested the cucumber,” Clifford recalls with a chuckle. “Angga was out of town, and she was angry that I had harvested them without her! I said, I can’t wait for you, the vegetables might fall off the plant.” The Timbancayas were so happy, they gave away baskets of their maiden crop to neighbours. Others have benefited from their own harvest of knowledge from the IFBS experience, even those who had already been working the land. Leny Dellosa was a housewife who took in laundry while husband Romeo worked as a speedboat operator for the luxury Lagen and Miniloc beach resorts in El Nido. In 2002, the couple invested some of Romeo’s earnings in land in Sitio Makangit, Barangay New Ibajay, El Nido, buying a little at a time until they owned a scenic five-hectare plot with its own cliff and water source. Leny began planting a hectare with banana, sweet potato, corn, and vegetables like eggplant and squash, but joined the IFBS seminar anyway in 2007 for more guidance. “I wanted more knowledge,” says the mother of four. “Just because you’re already a farmer doesn’t mean you know everything. You can’t just plan and plant without knowing how to do it.” Like the Timbancayas, the Dellosas learned the intricacies of farm planning, about intercropping and the use of permanent plants like banana, mango, and coconut trees. In the wide spaces between her rows of banana trees, Leny trims leaves and debris from smaller plots of sweet potato and sorghum, which she feeds to her chickens. Romeo and the children help out when they’re not at work and in school. Leny also grows natural insect repellents like chili and lemongrass to keep pests away, and is proud to say she has never resorted to using chemicals. She is likewise a big fan of composting, using decomposing banana leaves to fertilise the same trees where they came from. “It’s like recycling,” she says. “You return the nutrition to the soil, so the tree never stops bearing fruit. It makes a big difference.” The difference is also evident in the financial gain: even with losses from theft and rain damage, Leny can net some Php 5,000 (about US $104) a month from the sale of bananas and vegetables harvested from a single hectare. The money goes straight to her children’s education, and the Dellosas are proud to have their eldest son already in his second year of college, even as they dream of buying more land to till. The Timbancayas have also managed to net an impressive Php 25,000 (about US $520) in one good month. Meanwhile, the farm-grown sows have given Angga a steady stream of piglets, allowing her to make a whopping Php 60,000 (about US $1,200) in profit. This, again, despite lessons in coping with Mother Nature’s occasional tantrums — more specifically, rains that drown the roots and winds that lash at the trees and bushes. “When we planted the bitter melons, they were being blown off the vines,” Clifford recalls. His natural solution: trim the leaves to stabilise the plants, and grow trees as wind barriers between plots. More than the money, however, greater understanding of the land and the work has allowed these farmers to see beyond the horizons of their property. “Farming is hard work, but the satisfaction of being able to make things grow cannot be bought,” Leny says. “I never would have thought I could do this, and I’m just a woman and a housewife. The important thing is, you love the land, you love your plants and care for them like you would your family. After all, we’re doing this for our children and grandchildren.” Although the Timbancayas are elated that their son Clifford, Jr. is intent on studying food technology in college to eventually help out in the farm, they are also looking beyond their own circle to their community, to enable the people who work with them to jumpstart their own sustainable livelihoods. Angga distributes piglets among their workers to raise, and employer and employee split the sale down the middle. Many St. John farm hands have gone on to till their own plots, with encouragement from the couple. “There is so much to be gained from working the soil,” says Clifford. “I want to prove that you cannot be poor as a farmer, and there’s no shame in saying that you work in the fields. There’s no hunger in the fields.” SWP The Integrated Farming Bio-Systems (IFBS) programme is part of Shell Philippines Exploration and its joint venture partners’ social performance management plan for Northern Palawan, the area nearest the Malampaya gas field. Malampaya has been operating since 2001 and has been producing clean natural gas to three power stations to provide 2,700 megawatts of power to the country’s main island of Luzon, representing 25% of the country’s power requirements. Clifford and Angga Timbancaya constantly remind their children that everything they have comes from the land their parents work on. They have reopened their restaurant, John Clifford’s, now assured of a steady supply of organic vegetables, and they are hoping to turn St. John into an ecotourism stop where guests can harvest their own dinner. Already, town officials are sending delinquent farmers, often caught engaging in illegal or harmful farming methods, to St. John, just to see how it can be done right. SHELL WORLD PHILIPPINES 27 1/20/09 5:59:16 PM FEATURE Mark Jason with his teammates explaining their invention to the judges 21ST CENTURY EINSTEIN MEET MARK JASON MILAN, A 15-YEAR OLD YOUNG INVENTOR WHO GENUINELY CARES FOR THE PLIGHT OF THE FILIPINO PEOPLE AND DREAMS BIG FOR HIS COUNTRY By CHRISTINE R. GUISON Mark Jason with his teammates and John Newton from USA (2nd from left) t was more than a century ago when Jose Rizal, our national hero, articulated this proverbial line, “Ang kabataan ang pag-asa ng bayan (The youth is the hope of our nation).” With the often portrayed apathy of the present generation, one might ask if Rizal’s words still resonate to this day. Does this trite quote still hold true for the youth of the 21st century? Will Rizal himself disclaim his own words? I Mark Jason is a graduating student from Manila Science High School. When he was in his junior year, he ranked second best student in his batch. His mother, who accompanied him during the interview, has nothing but praises for his eldest child- “Proud ako sa anak ko. Siya ang binigay ng Diyos sa amin. Siya ang mag-aangat ng buhay namin (I am proud of my son. God gave him to us. He will help our family).” Self-confessed science geek Just when everyone else has started to doubt the future of the Filipino youth, enter a 15-year old young man from Sta. Mesa, Manila who we can all look up to. Mark Jason Milan is not the usual teenager. While his peers enjoy hanging out at the mall or tirelessly playing computer games during weekends, Mark Jason contentedly stays at home to read, plays chess with his younger brother and studies his lessons. This science whiz is also busy preparing for college entrance exams as he hopes to study in the University of the Philippines-Manila where he intends to take up Nursing as a pre-med course. “I read all the time, mostly Science textbooks. I love studying,” he timidly shares. “I want to be a doctor, specifically a pediatrician. If I don’t end up becoming a doctor, I will most likely be a scientist,” he says. At the tender age of 10, Mark Jason was already fond of all things related to Science. He says Science allows him to travel and explore different worlds. When INVESTIGATORY PROJECT: NEMO RELOADED Background of the Study: One of the major industries in the Philippines today is the fishing industry. Several fishing methods are already used here in the Philippines, however, these methods are somewhat outdated and traditional, not to mention environmentally unsafe. It has been proven that several species of fish can be attracted to cer tain sound frequencies. Wi t h this information, the researchers of Nemo Reloaded thought of introducing a new method that can help improve the fishing i n d u s t r y i n t h e c o u n t r y. Objective: Construct a device that generates different sound frequencies that can attract schools of fish. Significance of the Study: The device may offer advancement in the fishing industry. The introduction of this 28 SHELL WORLD PHILIPPINES Complete SWP 4.indd 28-29 Look at your environment and have a concern for your surroundings so that you can come up with researches that are useful to society.” Mark Jason with his mother, Magie, together with former Shell Pandacan Depot Manager Valarie Ku-Pineda and Social Performance Head Janot Barretto device in the market would mean more fish will be collected in a shorter period of time and in environmentally-friendly ways, thus making fish supply sustainable. Correspondingly, this will bring forth not only lower prices of fish in the market but also an evident increase in the income of fishermen as well as to other people who generate income from the fishing industry. If the government will help in the mass production of this device, then it can be exported to other countries and contribute in uplifting the Philippine economy. Materials and Equipment to be used: LM 555 timer IC, audio amplifier IC, potentiometer – variable resistance (volume control), rotary switch – tone/ frequency controller, resistors, capacitors, speaker, prototyping board, case, headers/ connectors, and speaker cable. Cost: Less than Php 500 asked which branch of Science he loves the most, he stated that he finds biology and physics the most fascinating. In fact, in his Friendster account, he aptly describes himself as, “A chordate who loves biology so much! An organism made up of four diverse macromolecules in the world. Has polysaccharides in the body; contains some adipose tissue in the limbs and arms. I was made unique by the nucleic acids and nucleotides in my cells and was primarily composed of structural proteins.” trip to the international science exhibition. As the leading innovator for the new energy future, Shell has been relentless in supporting talented Filipino youth in their noble quest for excellence, especially in technology and innovation. Shell believes that advances in these areas require having a different mindset and an attitude of persistence and optimism to find real solutions. Wow. It would certainly be an understatement to say that Mark Jason simply likes Science! Young inventor The contest mechanics were simple- research, create and present. Participants were tasked to set-up and decorate their respective booths, display their inventions and when the judges make their rounds to evaluate their created devices, they would have to explain how it works. Mark Jason and his teammates showcased two original inventions- Nemo Reloaded and Harvesting of Energy Thru Piezoelectric Igniters. An alumnus of MSHS made the preliminary research, while Mark Jason and his team developed the research and created the device. Sweet ending, bitter beginning Last September 24 to 30, 2008, Mark Jason, together with three other student- delegates from Manila Science High School (MSHS), participated in the 2008 International Exhibition for Young Inventors (IEYI) held abroad. When the competition organisers sent an invitation to MSHS to join, the teachers selected students who excelled in research and Science to represent the school. “I was happy and nervous at the same time,” recounts Mark Jason of how he felt before the contest. Preparing for the competition was not a breeze. Initially, the plan was to send nine students abroad. Although they were all raring to go to the international contest, their biggest problem was lack of funds. The school could not afford to send them all. Hence, out of the nine students who were supposed to go, the four best students were chosen -- and Mark Jason was one of them. Shell made this possible for the promising young scientist, having helped to sponsor his “I am very thankful that Shell supported me by shouldering my accommodations. It was a great help,” he modestly said. Nemo Reloaded got its name from the animated movie Finding Nemo as the invention aimed to help the fishing industry, especially in the Philippines. This sound-emitting device has a built-in waterproof speaker that can be submerged in water. As the sound waves travel in water, most species of fish get to detect it and are attracted towards the device. According to research, fish have otolith organs that allow them to recognise the sound and produce brainwaves. Sharks have no otolith organs so they do not identify with the sound. This device was tested in the University of the Philippines before the competition and Mark Jason’s team found out that frequencies from 1,000 to 1,500 hertz attracted the most number of fish. This groundbreaking invention is significant because it allows fishermen to catch fish in less time and with less effort. The other brilliant invention of Mark Jason and his team is called Harvesting of Energy Thru Piezoelectric Igniters. It is a prototype hump wherein igniters are placed inside. When vehicles pass over the hump, the igniters will be pressed down, allowing it to convert mechanical energy to electrical energy. The converted electrical energy can illuminate street posts or can be stored for future consumption. This is very cost effective as this invention can lessen people’s electricity expenditure. Mark Jason’s team bested over 15 participating countries including the USA, Japan, Singapore, Iran and Sri Lanka, as Nemo Reloaded emerged as one of the three best inventions in the Korean Special Award. According to him, language barrier was the reason why Team Philippines didn’t win gold. The panel of judges who were composed mostly of Koreans could not speak English and, as a result, were not able to fully understand Mark Jason’s group while they were explaining their invention. Nevertheless, Mark Jason did not go home empty-handed as he learned to be patient, optimistic and hopeful throughout the competition. Modern day Einstein Mark Jason is persistent - he is currently preparing for the Regional Intel Science Fair as he hopes to wow people once more with his passion for scientific research. Just like his personal hero, Albert Einstein, Mark Jason dreams to make revolutionary inventions that will greatly impact the Philippines and the society at large. His personal goal in life is to be able to contribute something significant to his country. His advice and message to the youth: “Be curious. Pursue Science careers. Look at your environment and have a concern for your surroundings so that you can come up with researches that are useful to society. Nemo Reloaded was our way of putting an end to dynamite fishing in the Philippines.” If Rizal looks at the youth today, will he be disappointed? Mark Jason proves that there is still hope in the Filipino youth. And no theor y or law can contradict that. SWP SHELL WORLD PHILIPPINES 29 1/20/09 5:59:48 PM COUNTRY ROUND-UP Shell wins prestigious Philippine Quill Awards Shell companies in the Philippines bagged three awards in the 2008 Philippine Quill Awards organised by the International Association of Business Communicators (IABC) Philippines. All of Shell’s entries won awards for its quality of communication strategy and effectiveness of implementation. Under the Publications category, Responsible Energy: The Shell companies in the Philippines Sustainability Report 2007 won the coveted Award of Excellence. This is the first annual Sustainability Report of Shell, which addresses the critical issue of meeting the world’s growing energy demand in economically, environmentally and socially responsible ways. Given the impact of Shell’s operations on national economies and individuals, Shell works hard to strengthen its commitment to sustainable development. Shell Art Calendar 2008 won an Award of Merit in the Publication Design category. It was conceptualised to celebrate the 40th anniversary Shell pledges in the GK Expo ’08: Anong Taya Mo Para sa Bayan? Complete SWP 4.indd 30-31 In its pursuit of academic excellence in the Philippines, Shell donated an audiovisual room (AVR) for the benefit of students of the De La Salle University – Manila. The AVR, tagged as the Shell companies in the Philippines Audio Visual Room is equipped with state-of-the-art audio and visual equipment, with a 93 theatre seating capacity, each seat equipped with a retractable writing tablet. The room is acoustic finished, which makes it sound-proof. Step lights are installed on the carpeted flooring to ensure safety. Apart from the comfort and safety offered by the room, modern equipment such as a motorised projector screen, LCD projector, readily available Internet connection, and an excellent sound system set were installed. Shell companies in the Philippines Country Chairman Edgar Chua graced the blessing of the AVR. “This audiovisual room is another milestone in the continuing partnership between De La Salle University and Shell. This is actually our way of giving back to La Salle for all the great graduates that we have been recruiting,” said Chua, who further added that providing the state-of-the-art audio visual room ensured that De La Salle University remains a premiere university. (From left) IABC Victoria, Australia Former President Adrian Cropley, Pilipinas Shell Sustainable Development Manager Chito Maniago, Pilipinas Shell Business and Corporate Communications Manager Sankie Simbulan, New Thinkers Company Director for Accounts Management Celina Matias, and IABC Philippines Director Chit Arce during the 2008 Philippine Quill awards ceremony. of the Shell National Students Art Competition (NSAC). It featured notable artworks of national artists including Bencab, Ang Kiukok, and Jose Joya, as well as celebrated artists Juvenal Sanso, Angel Cacnio, and Nestor Olarte Vinluan – all past Shell NSAC winners. This entry highlighted Shell’s untiring commitment and valuable contribution to Philippine art. The phase two of Shell’s Corporate branding campaign, dubbed as “Values”, also earned a Quill Award of Merit. It is a straightforward revelation of the countless lives that Shell has touched beyond the borders of the company. It provided the opportunity to share inspiring, true-to-life stories to a wider audience, informing the public on the various steps taken by Shell in seriously fulfilling its corporate social responsibility. This entry showed how Shell’s “Values” campaign became an effective medium to communicate the company’s commitment to sustainable development. In celebration of Gawad Kalinga’s (GK) fifth anniversary, a two-day festivity took place at the Fort, Taguig City, last October 11, 2008. Thousands of GK supporters from various sectors of society such as government, corporate industry, NGOs, academe, GK residents, religious organisations and civil society gathered together to meet a common goal –to build 7,000 GK communities by 2010. The big reunion of GK supporters kicked off with a marathon called Adidas King of the Road – Run for your Country in which the proceeds 30 SHELL WORLD PHILIPPINES Shell contributes to the improvement of education facilities in the country Shell entries were chosen from over 200 entries submitted this year by 43 respected authorities in the field of business and communications. The awarding ceremony was held on November 7, 2008 at the Hyatt Hotel & Casino in Ermita, Manila. IABC Philippines is the local chapter of an exclusive international network of more than 3,000 business communication professionals in over 60 countries. It links communicators in a global network that inspires, establishes and supports the highest professional standards of quality and innovation in organisational communication. [Christine Guison] will be used to build more GK communities for the poorest of the poor. This year’s battle cry, “Gawad Kalinga: Walang Iwanan”, posed a challenge to every Filipino as to what we can all offer towards nation-building. Shell companies in the Philippines Country Chairman Edgar Chua participated in the GK Building a Nation forum where various socio and civic leaders discussed the country roadmap to eradicate poverty. GK Visionary Tony Meloto graciously lauded Chua as a “pioneer GK Bayani” and thanked Shell for being one of its first major supporters during its humble beginnings, continuously supporting them up to now. Right after the forum, everyone proceeded to Block 47 for the much-waited GK Martsa ng Chua also mentioned that better facilities are instrumental to quality education because it sets the mood for learning, making learning more enjoyable for students. To cap his speech, he again lauded De La Salle University – Manila for the well-designed AVR and said that he is looking forward to more partnerships in the future. De La Salle University personnel, headed by its President and Chancellor Bro. Armin Luistro, FSC and its Executive Director for Development and Alumni Relations Jose Kalaw welcomed the Shell executives headed by Chua. Shell General Manager for Communications Roberto Kanapi and Shell Sustainable Development Manager Chito Maniago were also present during the blessing event. The Shell companies in the Philippines Audio Visual Room, located in Room 210, Velasco Hall of De La Salle University- Manila, was blessed last September 30, 2008. [Clara Antonette Eser] (L-R) DLSU–Manila Asst. Manager for School Facilities Engr. Aureliano Dela Cruz, Exec. Director for Development and Alumni Relations Jose Kalaw, Vice Chancellor for La Sallian Mission and External Relations Bro. Bernard Oca, FSC, Shell Philippines Country Chairman Edgar Chua, DLSU– Manila President and Chancellor Bro. Armin Luistro, FSC, and Shell SD Manager Chito Maniago during the blessing of the Shell companies in the Philippines Audio Visual Room. mga Bayani (Parade of Heroes), a march honouring the team of caretakers, kapitbahayan, partners and volunteers who tirelessly worked on the ground. This was participated by GK workers, corporate partners, volunteers, teams from different provinces, as well as youth volunteers from different schools, and even GK residents from various provinces in the country. Headed by Chua, close to a hundred Shell staff joined, joyfully waving their Shell flags and holding their red and yellow balloons while shouting the GK chant, “Tataya ako” as they walked towards the GK Expo site. The festive moment did not end with the march as the night commenced with the GK 1 World Concert. There were performances from different celebrities and entertainers who also gave their “taya” (pledge) for GK. Bands like Rivermaya, Spongecola, Sandwich, Imago, Cueshe and Six Cycle Mind wowed the GK youth with their world-class performances. Gloc 9 and Ryan Cayabyab also shared their talent with the lively crowd. Celebrity Mikee Cojuangco-Jaworski and GK spokesperson Iza Calzado, together with GK corporate partners were invited upstage to share their pledges. Shell Sustainable Development Manager Chito Maniago pledged that Shell would continue to develop the GK farms in Bicol and be the first to support the Green Kalinga. The myriad of faces displaying fulfillment and support towards the GK goal, giving the best for the least, was more than enough to cap the anniversary celebration of GK. [Clara Antonette Eser] Shell companies in the Philippines joins PR Congress for the Environment “We believe that our commitment to contribute to Sustainable Development holds the key to our long-term business success,” said Shell companies in the Philippines (SciP) Country Chairman Edgar Chua during the Public Relations Congress held on September 16-17, 2008 at the Intercontinental Manila in Makati City. Now on its 15th year, the Public Relations Congress organised by the Public Relations Society of the Philippines, looks at the role of Public Relations (PR) in helping businesses take good care of its people. With the theme ‘Planet, People, Partnership’, the two-day conference focused on how PR empowers companies to pursue earth-friendly initiatives through partnerships with key stakeholders. Chua emphasised the important role of PR practitioners in managing today’s social and environmental issues as well as in bolstering the reputation of one’s company. He gave a presentation on Sustainability Reporting where he discussed the different ways by which Shell engages its stakeholders in a transparent and accountable way. “We at Shell believe that proper engagement with stakeholders is very important. Reporting is one way of engaging our stakeholders especially in the oil industry,” said Chua. In Shell, reporting is anchored on the company’s three core values: honesty, integrity, and respect for people. These emanate from the Shell General Business Principles (SGBP), which is an underlying principle for good corporate governance and advocacies on Sustainable Development.Part of the programme was a discussion on how to win an Anvil award where Exploration and Production Communications Manager Karen Agabin showcased the winning SD programmes of Shell Philippines Exploration B.V. (SPEX) and the Malampaya Venture partners centering on the Sitio Agusuhin Project in Brgy Cawag, Subic, Zambales. The Public Relations Society of the Philippines has awarded Shell in the Philippines with a good number of Anvil awards for its various SD programmes. The Anvil is the symbol of Excellence in public relations in the Philippines, awarded by a distinguished multisectoral jury to outstanding public relations programmes and tools designed and implemented in the past year. [Jo Diana-Diga] SHELL WORLD PHILIPPINES 31 1/20/09 5:59:59 PM Shell University Talks: Leading the path towards a better future Shell supports Children’s Hour Every hour is time well spent. An hour of voluntary donation of one’s salary to Children’s Hour will certainly go a long way to fund the projects committed to the welfare and development of the disadvantaged Filipino children. Pilipinas Shell Petroleum Corporation (PSPC) is once again supporting the fundraising campaign of Children’s Hour to support its various social programmes. To seal its partnership anew, a memorandum of agreement (MOA) was signed on August 11, 2008 in Shell House, Makati City. (From left to right) Children’s Hour Resource Mobilization Officer Ruby Dans, Pilipinas Shell Business and Corporate Communications Manager Shell promotes sustainable mobility in ATTARS workshop Industry. Academe. Government: Bridging the Gap on Climate Change and Alternative Energy Technologies. This was the challenge posed to the participants of the Association of Tokyo Tech Alumni and Research Scholars’ (ATTARS) First National Workshop conducted last September 19, 2008 at the Traders Hotel Manila. The conference saw the convergence of experts from the different fields to address issues related to alternative energy and climate change. This seminar-workshop aimed to establish collaborative research activities geared towards the country’s further development. Shell companies in the Philippines Country Chairman Edgar Chua presented the various resources of alternative energy and Shell’s contribution in meeting today’s energy challenge. He related Shell’s initiatives and projects geared towards Sustainable Mobility, which include the use of hydrogen, which has a great potential to reduce emissions and increase energy security. Compressed Natural Gas (CNG) and Liquefied Petroleum Gas (LPG), on the other hand, are niche fuels that can likewise offer better air quality through less carbon dioxide emissions. Sankie Simbulan, Pilipinas Shell Downstream Communications Manager Mylene Santos, and SciP Sustainable Development Manager Chito Maniago witnessed the contract signing. Under the agreement, Shell will facilitate the fundraising programme among its employees by encouraging them to donate voluntarily to Children’s Hour to support its wide array of programmes geared towards the youth. [Jo Diana-Diga] Shell participates in the 7th International MAP CEO Conference Bearing the theme “The Competitiveness Imperatives: Create, Innovate, Shape”, the Management Association of the Philippines (MAP) organised the 7th International MAP CEO Conference which brought together businesses leaders of different fields to share and relate experiences in the two-day conference last October 7-8, 2008 at the Makati ShangriLa Hotel. This year’s conference tackled the appropriate strategies and responses towards the shifting global economy, where traditional methods and approaches are replaced by technology and innovation to ensure global competitiveness. Shell companies in the Philippines Country Chairman and outgoing MAP President Edgar Chua welcomed all the participants and said that the conference has been a premier venue for bringing together business leaders from various fields to establish stronger social and business networks. He further added that the conference aimed to imbibe the passion and know-how to business leaders who need maintain their industries’ competitive advantage in a globalised environment. At the Rizal Ballroom lobby of the Makati Shangri-La Hotel, a Shell exhibit was also showcased for the conference participants. The exhibit presented the theme Responsible Energy, meeting the world’s growing energy needs in economically, environmentally and socially responsible ways. The participants were likewise given copies of the Shell Sustainability Report, which outlines Shell’s response to the Energy Challenge and the pressing issue of global warming and climate change. [Clara Antonette Eser] Being a leader in sustainable energy development, Chua said that Shell is investing in various technological innovations to meet the world’s growing energy demand. He also added that Shell has teamed up with premiere academic institutions across the globe for biofuels innovation. 32 SHELL WORLD PHILIPPINES Complete SWP 4.indd 32-33 Shell continues to strengthen its recruitment strategy by visiting universities around the country. Through presentations about Shell in the world and in the Philippines and an open forum, students get to learn more about the company’s business operations and the different career avenues they can explore. On September 3, 2008, Shell was welcomed by the Business and Economics Students of the University of the Philippines (UP), including the students who were sent to Langkawi Malaysia for the Gourami Business Challenge last August 21-26, 2008. Speakers for the event were General Manager for Downstream Human Resources Gerboy Ortega, Sustainable Development Manager Chito Maniago, and Production Sharing Contract Accountant Jayjay Perlado. Perlado, a UP College of Business Administration alumni and a participant to the first Gourami Challenge, shared his experiences at Shell. “When I entered the company as a young professional, I was given a real and major responsibility which involved thinking out of the box and being accountable for every action and decision that I made. The work was very challenging and rewarding,” recounts Perlado. “The continuous increase of the world’s population will surge the demand for energy by twice as much as much as we do today,” said Chua, as he presented the world’s energy scenario by 2050. He also mentioned the three hard truths the world faces in this energy challenge: surge in energy demand, supply scarcity and rising CO2 emissions. “Shell offers the commitment and innovative technology to help meet the energy challenge. We cannot predict the makeup of fuels in the next decades but Shell intends to deliver a responsible energy future,” Chua concluded. [Clara Antonette Eser] Downstream HR GM Gerboy Ortega Shell companies in the Philippines Country Chairman and outgoing MAP President Edgar Chua, Downstream Communications Manager Mylene Santos, Pilipinas Shell Foundation Executive Director Edgar Veron-Cruz and Shell Tabangao Refinery General Manager Becky Alivio pose for a group photo by the Shell Responsible Energy exhibit. Ortega likewise engaged the students by talking about his work experiences at Shell, starting with his early stint as Retail Territory Manager to becoming the General Manager for Downstream Human Resources. Maniago, on the other hand, presented the Corporate Social Responsibility programmes of Shell, giving the students a glimpse of the various Shell projects aimed towards nation-building. After these informative talks about the company, Donna Perez of Shell Recruitment presented the criteria for prospective recruits to join the Shell workforce. Despite the heavy rains, various students from the colleges of Management, Marketing, Economics and Psychology came for the University Talk held at the Ateneo de Manila University on September 10, 2008. General Manager for Manila Shared Services Infrastructure Vince Ocampo presented a brief background about Shell and its businesses. On the other hand, Ortega imparted the importance of the core values and principles of Shell. HR Adviser JB Salvador and Instapave Manager Mike Son gave interesting testimonials about their experiences at Shell, including the various company activities where they participated as part of observing work-life balance. Their stories lent excitement to the students who were enticed to explore employment opportunities at Shell. Shell, in partnership with the Engineering Student Council, delivered a talk last October 3, 2008 to UP Engineering students. The company was represented by Ortega, Maniago, Crude and Distillation Unit Technologist Jake Zepeda who was hired through the 1st Gourami Business Challenge, and Rotating Equipment Engineer Glenn Pamplona, who shared about his experience working in the Shell Refinery in Tabangao, Batangas. Pamplona says work at the Refinery is not all technical but is coloured by fun, friendship, love and family life. These testimonials gave a clear picture of what Work-Life Balance in Shell is all about, which these soon-to-be graduates can look forward to when they join the company. These university talks marked another milestone for the company in its endeavour to pave the way for students to gain opportunities for a better future. [Jacky Nicolas] SHELL WORLD PHILIPPINES 33 1/20/09 6:00:15 PM LEGAL SPEAK Shell staff join the Gabriel Symphony Multi-Sport Event for a Cause Malampaya On-Shore Gas Plant welcomes Chevron Malampaya and PNOC-EC visitors AN INHERITANCE ISSUE: INSIGHTS ON DIVIDING PROPERTIES THAT CAN SAVE YOU TROUBLE IN THE FUTURE By ATTY. ERWIN R. OROCIO Malampaya On-Shore Gas Plant (MOGP) staff, headed by Installation Manager Bitoy Pantas, welcomed the whole team of Chevron Malampaya Llc. and the directors of Philippine National Oil Company- Exploration Corporation (PNOC-EC) in two separate occasions. S uccession, loosely referred to as inheritance, is one of the modes of acquiring property. Take the case of Carlito Leonguerrero and Isabella Fabale who were college sweethearts, inseparable from the moment they first met. The couple went on to bear their first child, Alberto on March 3, 1993. While Carlito and Isabella wanted to marry each other at that time, they could not lawfully do so since they were both only 16 years of age. Thus, on December 8, 1995, soon after Isabella turned 18, they married. So in love with each other, they did not bother to discuss any pre-nuptial arrangements. Through the course of their marriage, the couple went on to bear three more children: Barbie, Cipriano and Daniel. Headed by Chevron President Kevin Lyons, the seven members visited the plant last September 12, 2008 together with Vice President for Commercial Auby Legall, Jr. and Legal Manager Atty. Jay Layug. The MOGP team cordially received their joint venture partner and provided a thorough plant tour, which included a visit to the CNG mother station. Shell Refinery General Manager Becky Alivio joined the Chevron guests during lunch at the refinery’s Taclobo Club. In the afternoon, Refinery Learning Manager Art Elizaga arranged an orientation and tour inside the facility. They were joined by a group of fortyfive University of the Philippines Law students who actively engaged Shell Batangas CX Manager Daday De leon and Chevron guests in an informal forum on the processes of oil refining as well as gas pricing. Shell delegates joined the 6th Gabriel Symphony Multi-Sport Event for a Cause staged by the Gabriel Symphony Foundation last September 27, 2008 at the Alabang Polo Club in Ayala Alabang Village in Muntinlupa City. A week later, the MOGP team led by Shell Philippines Exploration (SPEX) Operations Manager Trevor Cogle received the directors of PNOC-EC. Among the PNOC-EC staff who visited the facility were Director Eduardo Hernandez, Director Crismel Verano, Jose Eijansantos and Jeff Acosta. A plant tour was also given to the esteemed officers of PNOC-EC. [Ma. Divina De Leon] A total of seven athletes represented the Shell team in the corporate relay. The group was headed by Shell Tax Compliance Head Maeng Pe Benito and Credit Representative Enrico Caramay. The corporate relay is one of the categories in the multi-sport event which involves running, biking and walking. Table 1: List of Properties Value (P Mn) House & Lot in Ayala Alabang (which Carlito 50.0 and Isabella made their family home) House & Lot in Pilar Village (where Carlito visited 5.0 Valerie and Eugene) SUV 3.0 Family Sedan 2.0 Club Share 1.0 Bank Account 5.0 Rolex Watch (a family heirloom his father handed 1.0 down to him on his 30th birthday in 2007) TOTAL 67.0 Property The Shell team won the bike relay category for completing some 210 km. The team also finished a 7.8 km swim and 42 km run. The relay was finished in less than 10 hours. Caramay also won third place in the individual bike category where he finished more than 50 km. Sayrol Tennate, another delegate from the Shell team, won first place in the 10-km run for women. The Gabriel Symphony Foundation’s annual 12-hour Multi-Sport for a Cause is a fundraising event set up in memory of Gabriel Rene Cayetano Sebastian, the son of Senator Pia Cayetano and Atty. Butch Sebastian. Gabriel was born with a rare chromosomal disorder and passed away at the tender age of nine months. [Clara Antonette Eser] 34 SHELL WORLD PHILIPPINES Complete SWP 4.indd 34-35 As happy as the couple seemed to be, the marriage grew stagnant, so much so that Carlito had taken to an extra-marital affair with one of his co-workers, a barrio lass named Valerie. This affair gave birth to a boy, Eugene, on October 23 ,2000. Eight years have passed… the affair continues (though Carlito never cohabits with Valerie) and the marriage stands firm (Carlito manages to go home to Isabella every night). Carlito manages to build a substantial fortune, providing a comfortable life for Isabella and their children in posh Ayala Alabang Village. At the same time, Carlito is able to provide for Valerie and Eugene. Unknown to Isabella, Carlito purchased a house and lot for Valerie and Eugene in nearby Pilar Village funded entirely by Carlito through bonuses (undisclosed to Isabella) accumulated over the years. Chevron Malampaya members at the Malampaya On-Shore Gas Plant (MOGP). Unexpectedly, Carlito dies of a heart attack, following his fright when he visited the 14th floor executive offices during the Halloween trick or treat last October 28, 2008. Carlito left no will (though he started to draft one in his memory stick). Isabella and Valerie are now bitterly fighting over his fortune. Summarised on Table 1 are the properties left behind by Carlito. How will the properties on Table 1 be divided? In order to distribute the property, we need to ascertain: 1. Whether a valid will was constituted 2. The legal status of each person with respect to the deceased, Carlito 3. The share of each person in the estate of Carlito 4. The property regime governing the relationships of Carlito 5. The classification of each property left behind 6. The properties that form the estate of Carlito Is there a valid will? The law requires that a will must be in writing and signed by the one making the will. Unfortunately, the draft found in Carlito’s memory stick does not satisfy the requirement of a valid will. As such, the rules of intestate succession (i.e., dying without a will) will apply. What is the legal status of each person in relation to Carlito? SURVIVING SPOUSE. At the time of Carlito’s untimely demise, his marriage to Isabella was subsisting. As such, Isabella is recognised as Carlito’s surviving spouse. CHILDREN. At the time of Alfredo’s birth on March 3, 1993, Carlito and Isabella, not being of legal age (<18), were not legally capacitated to marry. Because of that impediment, Alfredo is considered an ILLEGITIMATE child, even if his parents subsequently contracted a valid marriage. (AUTHOR’S NOTE: The situation would have been different if Carlito and Isabella were at least 18 years of age when Alfredo was conceived. Their subsequent marriage would have legitimated Alfredo) SHELL WORLD PHILIPPINES 35 1/20/09 6:00:19 PM LEGAL SPEAK Table 2: Distribution Schedule of Carlito’s Estate (Units and %) Name (Status) Units Share (%) Isabella (surviving spouse) 1.0 20 Alfredo (illegitimate child) 0.5 10 Barbie (legitimate child) 1.0 20 Cipriano (legitimate child) 1.0 20 Daniel (legitimate child) 1.0 20 Eugene (illegitimate child) 0.5 10 5.0 100 With regard to Barbie, Cipriano and Daniel, each having been conceived and/or born during the marriage of Carlito and Isabella, they are each a LEGITIMATE child. As to Eugene, having been conceived and born outside of a valid marriage, he is an ILLEGITIMATE child. Table 3: Distribution of Community Properties and Personal Properties of Carlito Property Total Value (P Mn) Share of Isabella (P Mn) Share/Estate of Carlito (P Mn) Share of Valerie (P Mn) House & Lot (Ayala Alabang) 50.0 25.0 25.0 0.0 House & Lot (Pilar Village) 5.0 2.5 2.5 0.0 3.0 1.5 1.5 0.0 SUV Family Sedan 2.0 1.0 1.0 0.0 Club Share 1.0 0.5 0.5 0.0 Bank Account 5.0 2.5 2.5 0.0 Rolex Watch 1.0 0.0 1.0 0.0 Total 67.0 33.0 34.0 0.0 child. In short, Alfredo and Eugene are each entitled to a “half unit” in the estate of Carlito. Applying basic algebra, where x represents one (1) “unit”, the distribution of Carlito’s estate can be translated to the following equation: Figure 1 Carlito’s Estate = properties each earned and acquired thereafter, except properties acquired during the marriage by donation. 1x (Isabella) + 0.5x (Alfredo) + 1x (Barbie) + 1x (Cipriano) + 1x (Daniel) + 0.5x (Eugene) In as much as the relationship between Carlito and Valerie is not recognised, the law does not provide for the property relations between the two lovers. PARAMOUR. As to Valerie, Ergo: inasmuch as Carlito did not live with her, What properties constitute the estate Carlito’s Estate her relationship with Carlito is not 1x + 0.5x + 1x + 1x + 1x + 0.5x = of Carlito? 5x = Carlito’s Estate recognised in law. (AUTHOR’S NOTE: Except for the Rolex watch that was Therefore : x = 1/5 Carlito’s Estate donated by Carlito’s Father, all the The situation would be different if Carlito had abandoned Isabella and left their properties listed in Table 1 constitute family home to move in with Valerie, living as if Hence, in the case of Carlito’s estate, the size of the community property of Carlito and husband and wife. In such a situation, the law one “unit” is equivalent to 1/5 (20%) of the Isabella. The house in Pilar, having been would recognise an informal civil partnership. ) entire estate, resulting in the following funded entirely by Carlito through his distribution scheme (see Table 2). earnings, also forms part of the community PARENTS. Though Carlito’s father is still alive, property of Carlito and Isabella. he does not stand to inherit from Carlito. Parents and ascendants only inherit in the absence of a What Property Regimes govern the two relationships Bearing in mind that: surviving legitimate child or descendant. of Carlito? In the absence of pre-nuptial agreements, the 1. Isabella has a 50% interest in the community What is the share of each person in the estate regime of “absolute community of property” property, and of Carlito? shall govern the property relations of Carlito Having determined the status of the persons, we and Isabella. The import is that Carlito and 2. The law does not recognise any property are guided by the following “BIG RULES” : Isabella jointly own (50:50) all of the properties rights for Valerie, the properties are first divided each owned at the time of the marriage and the as follows (see Table 3) 1. Legitimate children shall inherit in their own right all in equal shares (Art. 980, New Civil Table 5: Schedule of Code or NCC). What this means is that Barbie, Cipriano and Daniel are each entitled to one (1) Property Total Value 50% Share of Isabella in Community “unit”. The size of a “unit”, which depends on (P Mn) Property (P 33 Mn) the number of heirs and their respective legal status, will be determined on Figure 1. Only the share of Carlito in the community property and the Rolex watch, totalling Php34 M constitutes his estate to be divided by his heirs. The share of Isabella, in the community property, amounting to Php33 M, is hers alone. How will Carlito’s estate be divided? Applying the distribution schedule in Table 2 to the estate of Carlito as derived above, the share of each heir in the estate of Carlito can be translated to the following monetary values (see Table 4). However, the share of each heir consists of indeterminable interests in each of the properties forming Carlito’s estate. This results in a regime of “co-ownership” among all the heirs to the properties, to wit (see Table 5). The system of co-ownership, however, is one that has many disadvantages . Amongst them is management. Having to secure the consent of 6 persons (one of whom could be a bitter or unwelcome illegitimate child) in order to sell or maintain properties poses serious challenges. Imagine 30 years down the road when the current heirs will themselves transmit their interests in the properties to Table 4: Share of Each Heir in Carlito’s Estate (% and P) Heir Share in Carlito’s Estate (%) Share in Carlito’s Estate (P) Isabella (surviving spouse) 20 6.80 Alfredo (illegitimate child) 10 3.40 Barbie (legitimate child) 20 6.80 Cipriano (legitimate child) 20 6.80 Daniel (legitimate child) 20 6.80 Eugene (illegitimate child) 10 3.40 100 34.00 their respective heirs. These 6 co-owners can soon become 18 co-owners! Hence, to avoid squabbles in the future, it is recommended that the properties be partitioned immediately. This may entail certain heirs “buying out” the others’ interest in certain properties, while others graciously waiving their interest in another (e.g., Isabella and her four children waiving their interest in the Pilar house and lot in exchange of Eugene waiving his interest in all the other properties). Such “adjustments” may attract donor’s taxes, in addition to the estate taxes that will need to be paid, but its present cost may be worth incurring to avoid the agony of a family in turmoil. How the properties will eventually be partitioned will ultimately depend on the heirs (if they can agree amongst themselves) or the courts (if otherwise). SWP Disclaimer: The comments and opinions contained in this article are not exhaustive and are not intended to constitute legal advice or as substitute for the services of a lawyer. Erwin R. Orocio earned his Juris Doctor degree from the Ateneo de Manila, and holds degrees in Economics and Accountancy from De La Salle University. He and his wife, who is happily married to him, are blessed with a 4-month old boy. He has no other children (in Pilar or elsewhere). Neither does he have any bonuses to disclose. Heirs’ Interests in the Co-Owned Properties Share in Estate of Carlito (P 34 Mn) Isabella (20%) Alfredo (10%) Barbie (20%) Cipriano (20%) Daniel (20%) House & Lot (Ayala Alabang) 50.00 25.00 5.00 2.50 5.00 5.00 5.00 2. The surviving spouse has in the estate the same share as a legitimate child (Art. 996, NCC). What this means is that Isabella is entitled to a portion of Carlito’s estate equal to that of a legitimate child. In short, Isabella is also entitled to 1 “unit”. House & Lot (Pilar Village) 5.00 2.50 0.50 0.25 0.50 0.50 0.50 SUV 3.00 1.50 0.30 0.15 0.30 0.30 0.30 Family Sedan 2.00 1.00 0.20 0.10 0.20 0.20 0.20 Club Share 1.00 0.50 0.10 0.05 0.10 0.10 0.10 3. The illegitimate child shares in the estate in the proportion of ½ of the share of a legitimate child. (Arts. 993 and 895, NCC). What this means is that Alfredo and Eugene, while entitled to share in the estate of Carlito, are each allotted only one–half (½) of the share of a legitimate Bank Account 5.00 2.50 0.50 0.25 0.50 0.50 0.50 Rolex Watch 1.00 0.00 0.20 0.10 0.20 0.20 0.20 67.00 33.00 6.80 3.40 6.80 6.80 6.80 36 SHELL WORLD PHILIPPINES Complete SWP 4.indd 36-37 Eugene (10%) 2.50 0.25 0.15 0.10 0.05 0.25 0.10 3.40 SHELL WORLD PHILIPPINES 37 1/20/09 6:00:25 PM 2008 SNAPSHOT: 38 SHELL WORLD PHILIPPINES Complete SWP 4.indd 38-39 SHELL WORLD PHILIPPINES 39 1/20/09 6:03:58 PM 40 SHELL WORLD PHILIPPINES Complete SWP 4.indd 40 1/20/09 6:04:23 PM