Maynilad GHG Report 2011 - Maynilad Water Services Inc. · PDF fileMaynilad GHG Report 2011 . 2 | P a g e ... Caloocan, Pasay, Parañaque, ... first company in the Philippines with

November 2012

Integrated Accounting for Greenhouse Gases (GHG) and Air Emissions

Maynilad GHG Report 2011

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Table of Contents

ABOUT MAYNILAD 3

LIST OF ABBREVIATIONS 5

EXECUTIVE SUMMARY 6

THE GREEN TEAM 8

THE PROJECT 10

SETTING THE BOUNDARIES 13

SETTING THE ORGANIZATIONAL AND OPERATIONAL BOUNDARIES 13

SELECTION AND ESTABLISHMENT OF BASE YEAR 16

RECALCULATION OF BASE YEAR EMISSIONS 16

MAYNILAD’S 2011 EMISSIONS INVENTORY 17

TOOLS 17

METHODOLOGY 17

EMISSIONS FOR 2011 18

GHG EMISSIONS 18

COMPARISON WITH BASELINE YEAR 20

AIR POLLUTANT EMISSIONS 21

BENCHMARKING EMISSIONS WITH OTHER WATER UTILITIES 22

CONCLUSIONS 23

EMISSIONS REDUCTION PROGRAMS 23

ANNEX 1 – MAYNILAD’S QUALITY, ENVIRONMENT, SAFETY AND HEALTH POLICY 25

ANNEX 2 (A&B) – MEMORANDUM RE: GREENHOUSE GASES (GHG) TEAM 26

ANNEX 3 – EMISSION SUMMARY TABLES 28

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About Maynilad

Maynilad Water Services, Inc. (Maynilad) is the largest private water concessionaire in the Philippines in terms of customer base.

In 1997, the partnership of Benpres Holdings Corporation and Ondeo Water Services, Inc. (formerly Suez Lyonnaise

de Eaux) was awarded the 25-year exclusive concession by the Philippine Government, through the Metropolitan

Waterworks and Sewerage System (MWSS), to manage water and wastewater operations in the West Zone of the

Greater Manila Area with coverage of 540 square kilometers. This is composed of the cities of Manila (all but

portions of San Andres and Sta. Ana), Quezon City (west of San Juan River, West Avenue, EDSA, Congressional,

Mindanao Avenue, the northern part starting from the Districts of the Holy Spirit and Batasan Hills), Makati (west

of South Super Highway), Caloocan, Pasay, Parañaque, Las Piñas, Muntinlupa, Valenzuela, Navotas and Malabon—

all in Metro Manila; the city of Cavite, and the towns of Bacoor, Imus, Kawit, Noveleta and Rosario—all in Cavite

Province.

Towards its 10th year, after a string of financial, legal, and regulatory disputes, the Company went through a

change of ownership, with the Metro Pacific Investments Corporation and DMCI Holdings, Inc. consortium

(“Consortium”) acquiring 83.96% of the Company’s shares. Lyonnaise Asia Water Limited held a 16% share.

Maynilad’s customer base has expanded to 903,682 service connections and operates/ maintains 3 water

treatment plants, 3 wastewater treatment plants, 17 pumping stations, 19 reservoirs, 13 mini-boosters, 106

deepwell stations, 22 on-line boosters and 6,476 kilometers of pipelines.

In line with Maynilad’s commitment in providing quality water services at all times while giving value to

environment as well as the safety and health of its personnel, the company has achieved certification for its five

key facilities including company-wide certification from reputable international certifying bodies such as TUV SUD

and TUV Rheinland. The facilities awarded with compliance to ISO 9001:2008 (Quality Management System), ISO

14001:2004 (Environment Management System) and OHSAS 18001:2007 (Occupational Safety and Health

Management System are La Mesa Treatment Plants 1 & 2 (water treatment), Dagat-Dagatan Sewage and Septage

Treatment Plant and Tondo Sewage Pumping Plant. The company-wide certification for ISO 14064:2006 was the

first company in the Philippines with a certified carbon footprint.

The three water treatment plants are the La Mesa Treatment Plants 1 & 2, which have design capacity of 1500

MLD (million liters per day) and 900 MLD respectively; and the newly constructed Putatan Water Treatment Plant

(PWTP) which became operational on May 2012, with capacity of 100 MLD (to be increased up to 300 MLD by

2013).

The wastewater treatment facilities for sewage, septage and biosolids, are as follows:

Dagat-Dagatan Sewage & Septage Treatment Plant, which has a land area of 15 ha and capacity of 26

MLD. The septage treatment plant produces 22 cu. m. per day biosolids. These biosolids are registered as

organic fertilizers of the Fertilizer & Pesticide Authority. The plant is a registered manufacturer, distributor

and warehouse of organic fertilizer.

Tondo Sewage Pumping Plant which has 50,310 sewer service connections and pumping capacity of 432

MLD.

Alabang Sewage Treatment Plant has a capacity of 10 MLD.

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About Maynilad

7 lift stations (Sta. Cruz, Legarda, Port Area, Luneta, Malate, Paco and Sta. Ana) and 4 communal septic tanks (Roosevelt, Grant, Legal and Hereford)

The Company’s environmental mission is to protect the environment and conserve our water resources for future

generations. Thus Maynilad has been actively involved in different environmental protection programs such as the

Watershed Management Program. Together with the Manila Water Company, Inc., Metropolitan Waterworks and

Sewerage System (MWSS), Department of Environment and Natural Resources (DENR), and Maynilad forged an

agreement with the Bantay Kalikasan Foundation to formulate a program for the management of Ipo and La Mesa

Watersheds.

Maynilad has also tied-up with other companies, the DENR, MWSS, PLDT-Smart, the National Commission on

Indigenous People (NCIP) and the Local Government Unit (LGU) of Norzagaray, Bulacan for a sustainable tree

planting program at the Ipo Watershed. Other environmental programs are the Manila Bay coastal clean-up, solid

waste management and hazardous waste management. Aside from those mentioned environmental programs,

Maynilad is strictly complying with the regulatory requirements in wastewater discharge, air emission and other

required environmental clearances.

In addition, Maynilad has pursued innovative Corporate Social Responsibility (CSR) initiatives that promote poverty

alleviation by providing marginalized communities access to affordable, potable water, as well as livelihood

opportunities and avenues for community development. Some of these programs are: (1) Samamhang Tubig

Maynilad (STM) wherein residents of urban poor communities are organized into cooperative-based water

associations that are capable of managing their own water supply; (2) The livelihood project “Kapwa”, a line of

hygiene and homecare products which the Company helps develop and market; (3) Seashell Farmers’ Cooperative,

a partnership with the city government of Bacoor, Cavite to establish a cooperative which will serve the

impoverished fisher folk of the city; (4) Lingkod Eskuwela, this program promotes good health through proper

hygiene, and involves the installation of drink-and-wash stations in campuses, as well as the clean-up of water

reservoirs or tanks and regular sampling of drinking water to check its quality.

For this year, Maynilad received the ECO-BONUS certificate for its environment-friendly measures, making it one of

the 72 companies that completed and passed the validation of the Green Philippines Islands of Sustainability

(GPIoS) team. GPIoS, through the ECOSWITCH Awards, acknowledged us for making our operations more effective

and efficient through lean strategies such as: reduction of energy consumption, management of waste, and

optimization of raw materials used within the organization.

Maynilad aims to be the established leader in environmental best practices in the water industry. We stay focused

on projects, programs, activities and services that not only bring value to the business, but also to the different

communities that we serve.

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List of Abbreviations

AP air pollution

CAI-Asia Clean Air Initiative for Asian Cities

CDM Clean Development Mechanism

CH4 Methane

CO Carbon monoxide

CO2 Carbon dioxide

CO2e CO2 equivalent

DENR Department of Environment and Natural Resources

EF/s Emission factor/s

Gen sets Generator sets

GHG Greenhouse gas/es

GJ GigaJoules

HC Hydrocarbons

HFCs Hydrofluorocarbons

IMP Inventory Management Plan

kWh kilowatt-hours

LPG Liquefied petroleum gas

MLD Million liters per day

NCIP National Commission on Indigenous People

NRW Non-revenue water

N2O Nitrous oxide

NOx Nitrogen oxides

O3 Ozone

PBE Philippine Business for the Environment

PFCs Perfluorocarbons

PM Particulate matter

SF6 Sulphur hexafluoride

SOx Sulfur oxides

SRA Sugar Regulatory Authority

VOCs Volatile organic compounds

WBCSD World Business Council for Sustainable Development

WRI World Resources Institute

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Executive Summary

Maynilad has established an integrated greenhouse gas (GHG) and air pollutant emissions accounting system in

support of the company’s sustainability goals. The GHG and Air Emissions Inventory Development Project was

formally launched, with a 2-day seminar, on February 2 and 3, 2010. In particular, it aims to understand and

manage its greenhouse gas emissions and the co – benefits of managing air pollutants by designing an inventory

management plan and establishing its GHG and air pollutant inventory.

The Maynilad “Green Team” worked with the Philippine Business for the Environment (PBE) and the Clean Air

Initiative for Asian Cities in developing the following: a) an emissions inventory management plan; b) computations

of the baseline emissions of Maynilad; c) recommendations on how to move forward.

An Inventory Management Plan (IMP) was prepared under the project because it is essential in ensuring the

sustainability of the inventory in the future. It lays out the details of the inventory such as the boundaries,

calculation methodologies, data management process flows, management roles, auditing and verification and

other important details.

Maynilad established the 2009 data as its base year with a total emission of 30,213.57 tons of carbon dioxide

equivalent (tCO2e). This increased in 2010 by 28.66% to a total of 38,871.38 tons of carbon dioxide equivalent

(tCO2e) mainly due to the inclusion of new facilities and vehicles as well as the increase in the emission factor for

electricity consumed (as given by the Department of Energy).

The total GHG emission for Maynilad1 for 2011 is 42,657.66 tons of carbon dioxide equivalent (tCO2e). The direct

emissions comprise 7.31% (3,119.82 tCO2e) while indirect emissions from purchased electricity are 92.69% of the

total (39,537.84 tCO2e). This means that for every liter of water produced, Maynilad emitted 0.0522 grams of CO2.

98.7% of scope 1 and 2 GHG emission is Carbon dioxide (42,100.36 tons). The other gases that are considered by

the Kyoto Protocol (HFCs, PFCs and SF6) are not considered in the inventory since these are specific to certain

types of industries and are not relevant to the operations of Maynilad. Except for the business areas and CNRW,

indirect emissions from purchased electricity are higher than the direct emissions for each grouping. 61.87% of the

GHG emissions of Maynilad are Scope 2 emissions of Water Network. The largest contributor to the electricity of

the GHG emissions is the purchased electricity consumed at the La Mesa Booster Station, which contributes 27%

(11,659.37 tCO2e) to the total GHG emissions.

The 2011 results increased by 9.74% from the 2010 results. This increase is a result of the full operation of the

Putatan Water Treatment Plant. The total production of the said plant for 2010 is 8,533.93 ML which increased

almost four times to a total of 31,446.7 ML for 2011 thus increasing its power and fuel consumption.

In line with the continuous improvement of the GHG reporting, Maynilad has updated its Green Team, additional

representatives were included from different business units.

1 Scope 1 and 2 only

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Executive Summary

In pursuant to the aim of Maynilad to decrease its carbon footprint, emission reduction programs are continuously

implemented. This includes the following: (1) Conversion of the existing soft-starter motor controls to variable

frequency drives; (2) The reduction of electricity consumption in offices by turning off of lights during lunch breaks

and limiting the operation of air conditioning units from 8am-4pm.

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Maynilad involved representatives from different operational

units and departments in the process of inventory and

inventory system development. The involvement of these

different units has proven to be an effective way to identify

and resolve issues regarding the development of the

inventory. The “Green Team,” which handles the process for

preparing the GHG inventory management plan and inventory

report, was organized through a memorandum from the

President dated March 10, 20102 and was updated August 24,

2012 3 .

The key contacts for the project are:

FRANCISCO A. ARELLANO Project Head SAVP - Environment Management and IMS ENRIQUE G. DE GUZMAN Deputy Project Head Head, Integrated Management System

The members of the Maynilad Green Team are listed in the table

below: Table 1. Green Team Members and Secretariat

Name Unit/ Department

Jeric Daniel M. Axalan Business Area Operations

Teresita L. Hapal Business Area Operations

Mae Liza S. Velasquez CHCOD

Joy Marie C. Arce Central NRW

Mary Louie J. Lizarondo Central NRW

Lolita M. Lota Finance

Grace A. Laguardia Logistics

Gilbert M. Webb Logistics

Glenneth S. Magtalas Logistics

Samuel Gerald T. Saludez II Logistics

Kris G. Catangcatang Corportate QESH

Freda P. Boleyley Corporate QESH

John Emmanual B. Martinez Corporate QESH

Michael M. Sablas Corporate QESH

Abigail Corazon R. Atienza Wastewater Management Division

Xandra Mae B. Borais Wastewater Management Division

Adrianne M. Andres Wastewater Management Division

Elaine Rae L. Chang Water Network

Ressie D. Vicente Water Network

Digna C. Tesalona Water Network

Jonalyn Madriaga Water Production

Romer S. Jumawan Water Production

2 See Annex 2A for the memorandum 3 See Annex 2B for the memorandum

The Green Team

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The team is composed of representatives from the following operational units and departments:

Name Unit/ Department Phone Email

Jeric Daniel M. Axalan Business Area Operations 09272770941/ 9813470

[email protected]

Teresita L. Hapal Business Area Operations / 9813470 [email protected]

Mae Liza S. Velasquez CHCOD / 9813348 [email protected]

Joy Marie Arce Central NRW 09994565733/ 4031354

[email protected]

Mary Louie Lizarondo Central NRW 09334305475/ 4031354

[email protected]

Lolita Lota Finance 09185023598 [email protected]

Grace Laguardia Logistics 09285012189/ 9815363

[email protected]

Gilbert Webb Logistics 09176907560/ 9813363/ 9813364

[email protected]

Glenneth Magtalas Logistics 09055561586/ 9813364

[email protected]

Samuel Gerald Saludez II Logistics 09228112951/ 9813363

[email protected]

Kris Catangcatang Corporate QESH 09178247986/ 9813484

[email protected]

Freda P. Boleyley Corporate QESH 09336376297/ 9813484

[email protected]

John Emmanuel B. Martinez

Corporate QESH 09178049276/ 9813484

[email protected]

Michael M. Sablas Corporate QESH 9813484

Abigail Corazon Atienza Wastewater Management Division

09228486886/ 09053024829/ 9813405

[email protected]

Xandra Mae Borais Wastewater Management Division

09175576908/ 09496834044/ 9813405

[email protected]

Adrianne M. Andres Wastewater Management Division

9813405 [email protected]

Elaine Rae L. Chang Water Network 09175351458/ 5284173

[email protected]

Ressie D. Vicente Water Network 09285518192/ 5284173

[email protected]

Digna C. Tesalona Water Network 09088686238/ 5284173

[email protected]

Jonalyn Madriaga Water Production / 4307324 ext. 114 [email protected]

Romer Jumawan Water Production 09066200276/ 8626268

[email protected]

The Green Team

mailto:[email protected]

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Background

The acceleration of climate change is caused by the increasing GHG concentrations which cause a rise in the

Earth’s temperature, thus increasing its climate variability. Human activities generate GHG emissions, mostly

through energy use by industry, transport and households that is generated from burning of coal, oil and gas.

The response to climate change will be unique to each company and industry sector based on the differing risks

and opportunities confronting them. GHG accounting is one strategy that companies in the developed and

developing world are increasingly adopting. The GHG Protocol Corporate Accounting and Reporting Standard has

greatly contributed to the establishment of GHG accounting systems by corporations.4 In the Philippines, there are

still only a few companies who have established their GHG accounting systems.

While such systems are limited to measuring GHG emissions there is great potential for these systems to include

air emissions. Air pollution is an important local issue for companies, as it can impact the image of the company as

it negatively impacts the health of the citizenry. The World Health Organization estimates that more than half a

million people die prematurely in Asia every year because of air pollution. Air pollution also contributes to other

environmental problems such as acidification and eutrophication.5

As concerns for mitigating climate change and air pollution increases globally and locally, Maynilad recognizes that

the first step in managing its emissions is to establish an integrated GHG and air pollutant emissions accounting

system. For this purpose, a project called “Greenhouse Gases and Air Pollutant Emissions Inventory and

Accounting for Maynilad” was implemented in partnership with the PBE and the CAI-Asia Center in 2009. The GHG

Inventory was conducted annually after that.

Objectives

The main objectives of the project are the following:

Calculate the GHG emissions of the company for the year 2011.

Compare the 2011 inventory results with the previous years (2009 and 2010)

Recommend ways on how the inventory process can be improved in the future, as well as how Maynilad

can move towards reducing its emissions

4 Developed by the World Business Council for Sustainable Development (WBCSD) and the World Resource Institute (WRI) in collaboration with

corporations, non-governmental organizations (NGOs) and other institutions, it provides a step-by-step guide for companies to use in quantifying and reporting their GHG emissions. www.ghgprotocol.org 5 Acidification occurs when excessive amounts of sulphuric and nitric acid – which are formed from sulphur and NOx emissions released in the

atmosphere – are deposited into the environment. Eutrophication, also called “nutrient pollution”, is caused partly by NOx emissions.

The Project

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The Project

The following are the specific objectives of Maynilad in undertaking the Greenhouse Gases (GHG) and Air Emissions Inventory Project:

To account for GHG and air pollutant emissions annually and compare it to the with the previous years (2009 and 2010)

To monitor the emissions inventory in the following years

To minimize and manage the adverse impacts of our operations on the environment by optimizing the use of our resources, reducing the generation of waste and controlling the emission of pollutants to air, water and land

To provide the company with information that can be used to yield an effective corporate environment strategy or program to manage and reduce these emissions and possibly participate in the carbon market

To foster awareness of employees on environmental protection, particularly with respect to water resources and enhance employee participation in company environmental programs

To complement the company’s integrated management system particularly ISO 14001 (Environment Management System)

To reduce environmental risks

To enhance the company’s environmental and sustainability performance

To strengthen corporate social responsibility adherence

To generate cost savings

Maynilad has registered its GHG inventory and has obtained verification from an international certification body (TUV Rheinland). And in the future, apply for carbon credits from the international market for the emission reductions that can be achieved.

Working Sessions

As stated in the IMP, the green team would meet every trimester to discuss calculation concerns as well as updates on emission factors and other GHG matters.

The schedule of the meetings is detailed in the table below:

Table 3. Schedule of Meetings

Meeting Date

Urgent meeting Jan 5, 2011

1st

trimestral meeting Feb 10, 2011

2nd

trimestral meeting June 13, 2011

3rd

trimestral meeting Nov 3, 2011

The main activities done for the calculation of the 2011 GHG emissions for Maynilad are detailed in the subsequent sections. The details of the emissions and the recommendations on how Maynilad can move forward in emissions management were also discussed.

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The preparation of an Inventory Management Plan (IMP) is essential for the sustainability of the inventory process.

It lays out the details of the inventory such as the boundaries, calculation methodologies, data management

process flows, management roles, auditing and verification and other important details. It is the blueprint of the

inventory and would serve as a guide for anyone who would want to understand the details of Maynilad’s GHG

and air pollutant inventory.

Report Format

Maynilad’s GHG report was prepared in accordance with the content requirements of the ISO 14064-1. The

Inventory Management Plan, however, was based on the standard format that the World Resources Institute is

promoting. For the details of the items that are discussed below, please refer to the final version of the IMP.

The Project

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Setting the Organizational and Operational Boundaries

Defining the organizational and operational boundaries is critical in developing a GHG and air pollutant inventory

of a company. Organizational boundaries pertain to boundaries defined by the organizational structures and the

relationships among the parties involved. Operational boundaries are set to distinguish which emissions from the

operations of the company it emits directly and indirectly. Detailed scoping exercises were done during the initial

meetings in order to properly set the boundaries for the inventory.

Organizational Boundaries

Maynilad has adopted the use of the operational control approach for defining its organizational boundaries. This

means that Maynilad shall account for emissions from sources that it controls operationally.

A company directly accounts for GHG emissions from operations according to its share of equity in the operation

A company directly accounts for 100 percent of the GHG emissions from operations over which it has control. Control can be defined in either financial or operational terms.

Figure 2. Approaches for Defining Organizational Boundaries

Operational Boundaries

The representatives of these groups were tasked to identify the emission sources of their groups. A scoping

exercise was facilitated by CAI-Asia and PBE in order to identify the sources of the emissions for each of the

groups. The Green Team produced detailed lists of emission sources within the operations of Maynilad which

served as basis for the collection of the necessary information that were needed for the calculation of the yearly

emissions.

In order to be consistent with the global standard on GHG accounting, the GHG Protocol, the GHG and air pollutant

emissions are classified into the following scopes:

Scope 1: Direct emissions

Maynilad’s scope 1 emissions are emissions that are from the sources that it controls operationally. The main

sources of direct emissions in Maynilad’s operations are the company-owned vehicles. Emissions from other

equipment such as forklifts, water pumps, generator sets and grass cutters are also considered scope 1 emissions.

Process emissions from the wastewater treatment systems and biosolids are also included in this scope.

Equity Share Approach

Control Approach Financial Operational

Setting the Boundaries

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Scope 2: Indirect emissions from Purchased Electricity

Scope 2 emissions are indirect emissions from the generation of the electricity that is consumed by the company.

Scope 3: Other indirect emissions

Scope 3 emissions refer to emissions generated by activities which are not operationally controlled by Maynilad

but are considered important to their operations (e.g. activities of contractors, business travel and employee

commute). For Maynilad’s inventory, Scope 3 emissions from different activities are included where reliable data is

available.

The table below lays out the emissions that are covered by Maynilad’s GHG and air pollutant inventory for the

most notable emission sources in its operations.

Table 4. List of Emissions by Major Sources in Maynilad

Activity/Equipment Greenhouse Gases Air Pollutants

CO2 CH4 N2O PM CO VOC SOx NOx

Electricity consumption

Vehicles

Internal Combustion Engines (Equipment)

Wastewater treatment process-related emissions

Business Flights6

6 Hydrocarbon (HC) emissions are included in the calculations as the emission factors are available.


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Corporate

Balara Head Office, Fleet and Motor Pool, Socea Bonna, telemetry equipment and Balara Warehouses.

7

Business Areas

12 Business Area offices of Maynilad.7

Central Non-Revenue Water

CNRW Main Office (Bangkal), CNRW Office (Arroceros) 7

Water Network

Reservoirs, pumping stations, mini boosters, deep well stations, on-line boosters, and other special equipment

Water Production

La Mesa Water Treatment Plants 1 & 2, Putatan Water Treatment Plant, Common Purpose Facilities (CPF) such as Ipo Dam and Bicti Desilting Basin.

8

Wastewater Management

Dagat-Dagatan Sewage and Septage Treatment Plant, Alabang Sewage Treatment Plant and lift stations, Central Manila Sewerage System (Tondo Sewage Pumping Plant and 7 lift stations), Project 7 Imhoff Tank, and 4 communal septic tanks.

7 Satellite warehouses are included in the corresponding business areas

8 This also takes into account the Central Laboratory and Meter Laboratory


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Selection and Establishment of Base Year

Base year selection is important in enabling companies to consistently compare their emissions over time. Since

there is no sufficient information for the calculation of historical GHG emissions, the 2009 being the first inventory

was selected by Maynilad as the base year for emissions accounting. This is also in consideration of the effects of

the transition and re-organization within the company which took place in 2008.9

Reporting Period

The quantification of year 2011 was done on a single-year data, where period coverage is from January 1 to

December 31, 2011. As done in the establishment of the baseline year, the data for the fuel consumption will be

from January 2, 2011 to January 1, 2012. The data for the fuel consumption is given by our service, Chevron,

through their fleet cards, which acts as prepaid cards used by our services.

For electricity consumption since different cut-off billing periods are received from Meralco (Power Service

Provider), the bill-month is being established by the Finance Group of Maynilad through the Power Consumption

or Meralco Billing data being issued by GHG member from Finance to all GHG members on a monthly basis. Hence,

there is uniform reporting period and there is an assurance that power consumption per month is accounted by

each GHG group for a particular year.

Maynilad made this GHG and air emissions accounting on a regular basis annually and subsequently establish their

own database.

The selection of base year and its reporting period was developed consistent with the provisions of ISO 14064-1,

clause 5.3.1

Recalculation of Base Year Emissions

Structural Changes In the event of an acquisition or subsequent divestiture, the base year and subsequent years will be adjusted to

include or exclude the applicable emissions from each acquisition or divestiture, respectively. If the acquisition or

divestiture did not exist in the base years, the base years emissions will not be recalculated and adjustments to the

inventory will be made as far back as the data is available.

Methodology Changes If any changes to emission factors or calculation methodologies were found to result in significant differences,

adjustments will be made to the calculations for the years affected. Likewise, a base year adjustment will be made

if changes in calculations for the corresponding time frame or improvements in data accuracy lead to significant

differences in emissions. If the change is not significant that is not more than 5% or the data is not available for all

past years, the new methodology or calculation will be addressed in the report without recalculation to enhance

transparency.

9 See the “About Maynilad” section for details.

Reporting Period

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Introduction The calculation for 2011 inventory followed the revised IMP for 2011 inventory with additional revisions, such as

the update of the members of the Green Tream.

Tools The calculation tools for data collection and emissions estimation are Microsoft Excel-based spreadsheet tools

which were developed by CAI-Asia with support from PBE and subsequently modified to suit the needs of

Maynilad. The spreadsheet tools utilized globally-accepted methodologies and data (e.g. emission factors) from

sources such as the GHG Protocol, the AP-42 of the United States Environment Agency and the Clean Fleet

Management Toolkit of the United Nations Environment Programme.

Figure 3: Snapshot of the GHG and air pollutant estimation spreadsheet tools

Methodology The GHG and air pollutant emissions of Maynilad are estimated using the emission factor approach. Published

emission factors from globally-accepted emissions quantification tools and guidance materials are also used. The

basic formula used in the emission factor approach is:

A x EF x (1-ER/100) = E

Wherein:

A = activity data

EF = emission factor

ER = emission reduction efficiency10

E = emissions

10

Calculations for the emissions of the equipment assume that there are no emissions controls installed due to the lack of information and to

be able to achieve conservativeness in the calculations.

Maynilad’s 2011 Emissions Inventory

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The activity data is the measure of extent of the activities which emit emissions. An emission factor is a

representative value that attempts to relate the quantity of a pollutant released into the atmosphere with an

activity associated with the release of the pollutant. Ideally, emission factors applied are those specific for the fuel

used (based on analysis of e.g. fuel oil) or the equipment (based emission analysis of e.g. boilers), provided

analyses are conducted frequently enough to reflect the variability of emissions over time. The details of the

calculation methodologies can be found in the IMP.

Emissions for 2011 Maynilad’s 2011 GHGs and air pollutant emissions are detailed below.

Greenhouse Gas Emissions

Scope 1 and 2 Emissions

The total GHG emissions11

of Maynilad in 2011 are 42,657.66 tons of Carbon dioxide equivalent (tCO2e). The direct

emissions (Scope 1) comprise 3,119.82 tCO2e while indirect emissions from purchased electricity (Scope 2) are

39,537.84 tCO2e and other indirect emissions (Scope 3) account for 72.74 tCO2e. These values have increased from

the year 2010 (Figure 4) due to the full operation of Putatan Water Treatment Plant having its total production

four times than its production last 2010.

Figure 4. GHG Emission Comparison with previous year Figure 4: 2011 GHG Emissions from Maynilad (tCO2e and %)

12

11

Scope 1 and 2. 12

Figure Includes CO2, CH4 and N2O. CH4 and N2O are multiplied by their corresponding global warming potentials (GWP) to convert them into

CO2 equivalents.


In 2011, Maynilad released 42,657.66 tons of

CO2e. For every liter of water produced, Maynilad

emitted 0.0522 grams of CO2.

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In terms of the types of GHG gases emitted, 98.70% of GHG emissions are carbon dioxide (42,490.45 tons). The

other gases that are considered by the Kyoto Protocol (HFCs, PFCs and SF6) are not considered in the inventory

since these are specific to certain types of industries and are not relevant to the operations of Maynilad.

Figure 5. Percent Contribution of GHG Emissions by Type of Gas

Except for the groups of Business Areas and Central NRW, indirect emission from purchased electricity is higher

than the direct emission for each grouping. A total of 61.87% (26,392.88 tCO2e) of the GHG emissions of Maynilad

are Scope 2 emissions of the Water Network. The largest contributor of the GHG emissions is still the purchased

electricity consumed at the La Mesa Pumping Station, which contributed to 27% (11,659.37 tCO2e) of the total

GHG emissions.

Figure 6: GHG Emissions from the Different Groups (tCO2e)


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Comparison with 2010 Emissions

The total CO2e emission for 2011 has increased by 9.74% compared from the 2010 total emission and this can be

attributed to the full operation of the Putatan Water Treatment Plant increasing its production to almost our times

than the previous year.

In the year 2010, Maynilad only accounted for the 481 vehicles in the Scope 1 emissions. For the year 2011, a total

of 571 vehicles were included in the Scope 1 emissions. However, it can be seen that for 2011, there is a decrease

except for the Central NRW in liters of fuel being consumed by each vehicle (Table 1). From an average of 1,911.70

liters of fuel per vehicle (L/vehicle) in 2010 it went down to 1,565.98 L/vehicle for 2011. The Wastewater

Management and Corporate group largely contributed to this decrease in average fuel consumption from 6,095.22

and 1,489.41 L/vehicle in 2010 to 5,080.21 and 924.06 L/vehicle for 2011 respectively (a decrease of almost 23%).

For 2011, the company disposed ninety (90) old vehicles and replaced it with one hundred fifty eight (158) new

vehicles, either company owned or rental.

Table 5. Average Fuel Consumption for Scope 1 Vehicles (in Liters per vehicle)

2010 2011

Business Area 1,405.14 1,145.80

Corporate 1,489.41 924.06

Central NRW 1,404.32 1,678.82

Sewerage and Sanitation 6,095.22 5,080.21

Water Network 1,487.48 1,144.79

Water Production 1,558.37 1,199.32

Total Average 1,911.70 1,565.98

For the calculation of Scope 2 emissions, data obtained from the Department of Energy is used as the basis for the

calculation of the emission factors (amount of GHG released per kWh). In terms of emission of GHG, coal-fired

power plants have the greatest amount of gases released per kilowatt-hour it produces. For the year 2011, coal-

fired power plants produced around 25.3 million kWh, the highest production ever from 2002 to 2011. But the

total CO2 emission factor has no significant increase. The emission factors for each gas and air pollutant from 2010

to 2011 are summarized below (Table 6).


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Table 6. Emission Factors for Scope 2 (in tons/MWh)

Emission Factors for Scope 2

2009 2010 2011 % increase/ decrease from previous year

CO₂ 0.43661908 0.51056505 0.50834019 0.44 % deccrease

CH₄ 0.00000668 0.00000789 0.00000693 12.19 % decrease

N₂O 0.00000421 0.00000545 0.00000557 2.23 % increase

PM 0.00001467 0.00001772 0.00001307 26.25 % decrease

NOX 0.00126689 0.00151218 0.00151727 0.34 % increase

SOX 0.00817017 0.01080092 0.01130072 4.63 % increase

CO 0.00011089 0.00012477 0.00012518 0.33 % increase

VOC 0.00002835 0.00003211 0.00003167 1.38 % decrease

Air Pollutant Emissions Maynilad’s air pollutant emissions are summarized in the table below. Scope 1 accounted for most of the emission

for particulate matter (73.26%), Carbon Monoxide (93.28%) and Volatile Organic Compounds (92.31%) while Scope

2 accounted for most of the emission for NOx (75.82 %) and SOx (99.75%). The air pollutants emission for 2011 for

NOx and SOx saw an increase attributed to the same factors as that of the increase in CO2e emissions (increase in

operation of Putatan Water Treatment Plant).

Table 7. 2010 Air Pollutant Emissions (tons)

PM NOx SOx CO VOC

Scope 1 2.77 37.45 2.18 134.39 29.44

Scope 2 1.01 117.44 874.68 9.69 2.45

Figure 7: Air Pollutant Emissions Comparison The Scope 3 air pollutant emissions of Maynilad in 2011 are minute: NOx emissions are 190 kilos, CO emissions are 93 kilos.


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Benchmarking Emissions with Other Water Utilities

There are two principal aspects in GHG accounting that are of interest - the absolute quantity of GHG emissions as

well as the value of the normalized emissions or the quantity of emissions relative to a measure of output.

Normalization of emissions is important as this allows for companies to:

track their emissions performance over time

compare their own emissions with similar business operations within the company

and benchmark with other companies with similar businesses

Water utilities around the world normally use water production statistics or final billed volume as the factor for

normalizing their emissions. The table below benchmarks Maynilad emissions against other companies engaged in

water production and distribution. The differences from the figures may be attributed to differences in accounting

techniques (e.g. what sources are included), and operational characteristics such as geography and technology

(i.e., the level of difficulty in extracting water and the choice of technologies).

Table 8. Benchmarking Maynilad emissions with other water distribution/utility companies worldwide13

Country Company GHG Emissions (tCO2e)

Year Water Production (million Liters

unless specified)

CO2/water produced

(tCO2e/unit of production)

UK Anglian 504,026 2011 - -

New Zealand Metro Water 2,500 2009 46,000 0.05

Japan Kurita Group 23,941 2011 - -

Philippines Manila Water 56,976 2011 411,60014

0.1384

Australia Sydney Water 354,000 2008 481,701 0.735

South Africa Umgeni 134,370 2010 426,000 0.323

New Zealand Water Care 25,670 2009 131,000 0.20

Australia Gold Coast Water 91,199 2010 - -

Australia Westernport Water

4,487 2011 1,890 2.374

Philippines Maynilad 42,657.66 2011 768,080 0.0522

Philippines Maynilad 42,657.66 2011 404,75014

0.1054

From the table above, Maynilad and Metro Water have the lowest CO2 emissions intensity in per unit of water produced among the different companies. However, due to the losses from the non-revenue water, the emissions efficiency of Maynilad deteriorates if the losses from water distribution are accounted for. Using the billed volume in million cubic meters (mcm) as the normalizing factor, the emissions intensity of Maynilad becomes 0.1054 tons/

million liters.15

13

Sources: Anglian Water. Greenhouse Gas Emissions Annual Report 2011. ; Metro Water. Corporate Social Responsibility Report 2009.; Kurita

Group. Environment Report 2011 ; Manila Water. Sustainability Report 2011 ; Sydney Water. Annual Report 2008; Umgeni Water. Annual Report 2010.; Water Care Services Limited. 2009 Annual Report. ; Gold Coast Water. Sustainability Report 2010; Westernport Water Annual Report 2011. 14

Billed volume, in million liters 15

Equivalent to g/liter


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Conclusions The project was successful in accounting the 2011 GHG emission though the value for the year was higher than the

2010 data. The increase in the value is however caused by the full operation of its newest treatment plant, the

Putatan Water Treatment Plant. The total production for 2011 is four times than the 2010 initial production.

The project has also been helpful in identifying potential areas for generating emissions savings by improving

efficiencies in such areas as the booster station electric equipment, reducing electricity consumption in offices and

improving the efficiency of its vehicle fleet.

This project serves as a guide towards implementing actual measures towards emissions reduction in Maynilad.

Emissions Reduction Programs The development of a company-wide roadmap towards reducing emissions is seen to be important. Although

Maynilad can embark on single measures towards emissions reduction, having a holistic program would be more

impactful and efficient. This report highlights the main areas where the company has implemented actions in

reducing emissions and the future actions to be done for the succeeding years.

Variable Frequency Drive

In order to optimize the operation of the pumps, the company is using variable-frequency drive (VFD’s) for the

pumps. A variable-frequency drive is an electronic controller that adjusts the speed of an electric motor by

modulating the power being delivered. VFD’s provide continuous control, matching motor speed to the specific

demands of the work being performed. It is an excellent choice for adjustable-speed drive users because they

allow operators to fine-tune processes while reducing costs for energy and equipment maintenance. In pumps,

VFD’s allows for the accommodation of fluctuating demand, running pumps at lower speeds and drawing less

energy while still meeting pumping needs. Potential energy savings from use of VFD’s on pumps can reach up to

50%.

Currently, there are twenty-nine (30) VFD’s that are being used in Maynilad’s major pumping stations and online

boosters (23 on pumping stations and 7 on online boosters).

Electricity Consumption Reduction

Maynilad has implemented measures in reducing the electricity consumption in the offices. Among the offices are

those that have a certified IMS like the La Mesa Treatment Plant 1 & 2, Dagat-dagatan Sewerage and Septage

Treatment Plant and the Tondo Sewage Pumping Plant, where reduction of electricity consumption is part of their

OTP’s (Objectives, Targets & Programs). Among the measures being practiced in the offices is the turning off of the

lights and computer monitor during lunchtime (12nn-1pm), turning on of the air-conditioning units (ACU’s) only at

9am (instead of 8am) and turning it off at 4pm (instead of 5pm) and the increasing of the operating temperature of

the ACU’s.

However, since the company’s coverage area is still expanding, an increase in electricity consumption for the

pumping stations/boosters as well as the treatment plants is unavoidable to be able to reach the expansion areas.

The increase in the electricity consumption is more than the decrease in the electricity consumption achieved in

the offices. Among the major expansions are areas being supplied by the Putatan Water Treatment Plant thus an

increase in its production is necessary.

Conclusions

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Company Vehicles

The company vehicles of Maynilad are its main source of air pollutant emissions. Moving towards a cleaner fleet

will not only result in financial and emissions savings but improve the company’s image as well. A company’s

vehicles are moving images of the company, and are most visible to the public and its customers. A cleaner fleet

means a cleaner image for the company. Maynilad is already in the process of replacing the outdated company

vehicles some of which have been in the company since the 1990’s. Most of these vehicles are classified under the

Pre-Euro category which has higher emission factor compared to the new vehicles that the company replaced 90

of the old vehicles for 2011 with 158 new vehicles that are euro-2.

Conclusions

Annex 1 - Maynilad’s Quality, Environment, Safety and Health Policy

Annex 2A – Memorandum Re: Greenhouse Gases (GHG) Team

Annex 2B – Memorandum Re: Greenhouse Gases (GHG) Team (Updated)

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Annex 3: Emission Summary Tables

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Summary

CO2 CH4 (CO2e) N2O (CO2e)Total GHG

(CO2e)PM NOx SOx CO VOC

Vehicles (company-owned) 2,268.25 3.93 97.51 2,369.69 2.50 30.93 1.99 132.60 28.75

Internal Combustion Engines (company-owned) 332.51 0.30 0.88 333.69 0.27 6.52 0.19 1.79 0.69

Other Emissions (Scope 1) 106.82 309.62 - 416.44 - - - - -

Sub-total 2,707.58 313.85 98.39 3,119.82 2.77 37.45 2.18 134.39 29.44

Scope 2 Electricity Sub-total 39,392.79 11.28 133.78 39,537.84 1.01 117.44 874.68 9.69 2.45

42,100.36 325.13 232.17 42,657.66 3.78 154.89 876.86 144.08 31.89

Vehicles (contracted-out) - - - - - - - - -

Business travel 72.02 0.01 0.71 72.74 - 1.90 - 0.93 -

Internal Combustion Engines (contracted-out) - - - - - - - - -

Other Emissions (Scope 3) - - - - - - - - -

Sub-total 72.02 0.01 0.71 72.74 - 1.90 - 0.93 -

42,172.38 325.14 232.88 42,730.40 3.78 156.80 876.86 145.01 31.89 TOTAL

Sources

GHG Emissions (tons) Criteria Air Pollutants (tons)

Scope 1

TOTAL (Scope 1 and 2)

Scope 3

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Business Areas

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs


Vehicles (company-owned) 908.72 1.48 20.88 931.08 0.77 8.79 0.80 65.82 14.23


Other Emissions (scope 1) - - - - - - - - -

Sub-total 916.99 1.49 20.90 939.38 0.78 8.91 0.80 65.87 14.33

Scope 2 Electricity Sub-total 637.90 0.18 2.17 640.25 0.02 1.90 14.18 0.16 0.04

1,554.89 1.67 23.07 1,579.63 0.79 10.81 14.98 66.03 14.37


Business travel 0.67 0.00 0.01 0.68 0.00 0.00



Sub-total 0.67 0.00 0.01 0.68 - 0.00 - 0.00 -

1,555.56 1.67 23.07 1,580.31 0.79 10.81 14.98 66.03 14.37 TOTAL

Sources


Scope 1


Scope 3

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Central NRW

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs





Sub-total 270.06 0.85 2.19 273.09 0.10 2.96 0.13 37.76 6.67


314.10 0.86 2.34 317.30 0.10 3.09 1.11 37.77 6.67


Business travel 8.99 0.00 0.09 9.08 0.01 0.00



Sub-total 8.99 0.00 0.09 9.08 - 0.01 - 0.00 -

323.10 0.86 2.43 326.39 0.10 3.10 1.11 37.77 6.67 TOTAL

Sources


Scope 1


Scope 3

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Corporate

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs



Internal Combustion Engines (company-owned) - - - - - - - - -


Sub-total 94.34 0.15 4.82 99.31 0.13 1.64 0.09 5.55 1.08


944.19 0.39 7.71 952.29 0.15 4.18 18.98 5.76 1.14

Vehicles (contracted-out) - - - - - - -

Business travel 53.20 0.00 0.53 53.73 0.06 0.04



Sub-total 53.20 0.00 0.53 53.73 - 0.06 - 0.04 -

997.39 0.40 8.23 1,006.02 0.15 4.24 18.98 5.81 1.14 TOTAL

Sources


Scope 1


Scope 3

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Wastewater Management

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs




Other Emissions (scope 1) 106.82 309.62 - 416.44 - - - - -

Sub-total 824.60 310.48 60.99 1,196.07 1.22 15.51 0.73 10.42 2.44


2,919.54 311.07 68.10 3,298.71 1.27 21.76 47.24 10.93 2.57


Business travel 5.09 0.00 0.05 5.14 0.83 0.58



Sub-total 5.09 0.00 0.05 5.14 - 0.83 - 0.58 -

2,924.63 311.08 68.15 3,303.85 1.27 22.58 47.24 11.51 2.57 TOTAL

Sources


Scope 1


Scope 3

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Water Production

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs





Sub-total 132.83 0.19 3.84 136.86 0.13 1.98 0.12 4.31 0.65


9,602.83 2.90 36.00 9,641.74 0.37 30.24 210.65 6.64 1.24


Business travel 0.72 0.00 0.01 0.72 0.00 0.00



Sub-total 0.72 0.00 0.01 0.72 - 0.00 - 0.00 -

9,603.55 2.90 36.01 9,642.46 0.37 30.25 210.65 6.64 1.24 TOTAL

Sources


Scope 1


Scope 3

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Water Network

CO2CH4

(CO2e)

NO2

(CO2e)

Total GHGs





Sub-total 468.76 0.70 5.65 475.11 0.42 6.46 0.30 10.48 4.27


26,764.81 8.23 94.96 26,867.99 1.10 84.94 584.88 16.95 5.91


Business travel 3.35 0.00 0.03 3.38 1.01 0.30



Sub-total 3.35 0.00 0.03 3.38 - 1.01 - 0.30 -

26,768.16 8.23 94.99 26,871.38 1.10 85.95 584.88 17.25 5.91 TOTAL

Sources


Scope 1


Scope 3

Documents

Maynilad GHG Report 2011 - Maynilad Water Services Inc. · PDF fileMaynilad GHG Report 2011 . 2 | P a g e ... Caloocan, Pasay, Parañaque, ... first company in the Philippines with