The importance of developing ecologically responsive industrial parks
Blogs
August 22, 2023
The unprecedented rise of Asia’s economies is a watershed series of events that will be studied for centuries to come. From the ashes of colonialism and the Second World War, many Asian countries were able to completely transform into the economic and technological juggernauts we know today. In many cases, they even outperform their former colonial masters in GDP per capita and key human development metrics. Today, the collective dominance of Asia’s economies is so undeniable that there is virtually no major global supply chain that does not source labor, materials, or technology from at least one Asian country.
Throughout all this, it is impossible to separate industrial parks and similar mixed-use economic estates as key ingredients in Asia’s newfound prominence in global affairs. While similar developments had been built elsewhere, the first Asian industrial parks and estates are unique in that they are often as much products of state-directed policies as they are projects of private companies. And where the goal of earlier industrial zones was to provide scale and cost-efficiency, the emerging Asian industrial park models were also meant to support multiple long-term economic goals.
The rise of Asian industrial parks
For almost all of Asia’s major economies, fostering an export-oriented economy was, and continues to be an important goal. At the end of the Second World War, most Asian domestic markets were left devastated with most individuals having relatively little buying power. Because of this, selling to foreign markets became a preferred way to stimulate economic growth and drive industrialization.
For a while, post-war industrial parks were mostly set up to meet the needs of domestic exporters. However, a different model would soon emerge. Starting in the 1970s, the People’s Republic of China, created a then-new model for industrial zones. The government would provide cost-saving perks and exemptions to export-oriented foreign investors working within specially designated areas. In exchange, foreign businesses would provide jobs and transfer key value-creating technologies to locals.
This foreign direct investment (FDI)-centered approach proved to be a winning arrangement, particularly for disadvantaged economies that had a limited preexisting industrial base. Soon, similar pro-FDI industrial park policies were enacted in many other Asian countries, including the Philippines.
Ecological consequences of industrial park development
While a major driver of Asia’s economic rise, these earlier industrial parks did not come without their drawbacks. Concentrating the world’s industrial production in just a few key areas predictably resulted in highly concentrated environmental devastation.
Before the spread of export-oriented parks, the resulting pollution from industrial production was more spread out across the world. Today, the countries where production has been largely offshored produce a disproportionate amount of environmentally damaging pollutants, effectively destroying land and water systems while also creating multi-generational health hazards. The ecosystems surrounding many former and extant industrial parks throughout Asia continue to be beleaguered by pollution, with some areas now unsuitable for long-term habitation.
More importantly, these parks have come to be recognized as a major contributor to climate change. For instance, in China, 72% of greenhouse (GHG) emissions are a result of industrial activity, much of it originating from special economic zones. With the global community now involved in a collective effort to combat climate change, much of the responsibility for reducing the production of GHGs falls upon policymakers and businesses tied to industrial parks and similar economic estates.
Ecologically responsive industrial parks: A new way forward
Ever since the environmental fallout from earlier industrial parks and the unveiling of the climate change threat, forward-thinking real estate developers such as Aboitiz InfraCapital (AIC) have been looking for ways to do things better in the Philippines. For instance, AIC is in the process of transforming its 540-hectare mixed-use development West Cebu Estate (WCE) in Balamban, Cebu, into a “next-generation, smart, and sustainable Economic Estate”.
As part of this vision, AIC is running several initiatives that will allow WCE to meet and exceed global sustainability standards. Soon, several waste management solutions will also be implemented to prevent damage to the surrounding environment. As WCE is located directly next to the Tañon Strait, a global marine biodiversity hotspot, this initiative will help ensure that the area’s resources will be enjoyed by future generations of Filipinos.
Moreover, WCE’s power requirements will be augmented with solar panels to reduce its dependence on fossil fuels. As a major industrial site and the Shipbuilding Capital of the Philippines, this will be a serious undertaking, given the immense energy requirements associated with large-scale activities.
Additionally, AIC is now taking steps to ensure that WCE is recognized by the Philippine Green Building Council (PHILGBC) as a green estate under the Building for Ecologically Responsive Design Excellence (BERDE) rating system. The BERDE certification system measures how much developments excel beyond the existing local environmental regulations. AIC’s LIMA Estate in Batangas recently became the first industrial park to achieve the pilot BERDE District Certification with a 5-star rating, the highest rating awarded by PhilGBC to real estate developments.
AIC has learned from the lessons of earlier industrial parks to offer a new type of ecologically sound mixed-use estates to investors. By showing the way forward with its economic estates, AIC may yet pioneer a better, less environmentally impactful way of doing business.
Reasons to push for greener industrial parks
Despite the clear environmental costs, there is still some hesitation in some sectors about transitioning to more ecologically sound industrial park models. Here are some of the reasons why policymakers, investors, and communities should switch to greener models such as those used by AIC:
1) Drive sustainable growth
Operating older industrial park models exacts human and long-term economic costs. Workers and members of surrounding communities who become sick because of pollution create burdens on healthcare systems, creating additional costs for taxpayers. Workers with poor health also take more sick days and tend to have poorer output, causing productivity losses for businesses. Additionally, sick individuals have to be cared for by healthy family members, further reducing the economic output of their household. Lastly, restoring land that has been damaged by pollution can be exceedingly expensive, possibly turning off future investors.
Greener industrial park models promise to remove or, at least, mitigate many of these burdens. By pushing for greener ways of doing business now, park stakeholders can be assured of continued growth and profits for years to come.
2) Preserve dwindling resources
Ecologically responsive industrial parks adopt technologies and practices that minimize resource consumption. With the Philippines now facing threats to its water and energy security, practices such as those currently being implemented by AIC in its WCE and LIMA estates may serve to mitigate the impact of these challenges.
Initiatives like implementing energy-efficient systems, adopting more efficient water infrastructure, and using renewable energy sources are some of the ways industrial parks can reduce their ecological footprint. Park developers can also prioritize recycling and waste reduction to minimize the extraction of virgin materials from the environment.
3) Improve regulatory compliance
By investing in greener industrial parks, foreign investors can ensure better compliance with increasingly stringent environmental laws. Industrial parks like AIC’s economic estates are developed on newer environmentally conscious models that are designed to adhere to and exceed regulatory standards, reducing investors’ financial, legal, and reputational risks.
4) Enhance brand value
Consumers are increasingly conscious of environmental issues and tend to favor companies that consistently demonstrate a commitment to greener ways of doing business. Investing in newer, environmentally sustainable economic estates allows foreign investors to align their businesses with sustainability principles, thereby enhancing their brands’ value.
5) Contribute to local communities’ well-being
Activities that are harmful to the environment inevitably cause harm to the communities that depend on it. And as the climate change threat shows, many of our actions have a truly global impact.
By investing in developments like AIC’s, investors can not only prevent damage to the environment but also contribute to the economic development, job creation, and social well-being of the communities where their investments are located.
A better, greener, more humane way of doing business
Green economic estates represent a logical next step from the earlier industrial parks that helped bring Asia’s economies to their current levels of prosperity. By learning from the mistakes of the past, Aboitiz InfraCapital and other like-minded developers are now helping investors and communities succeed without reneging on their responsibilities to the planet. Moreover, this is all being done without negatively impacting the profits that made industrial parks profitable to begin with.
As the world continues to fight climate change and prioritize sustainability, the significance of industrial park developments, like AIC’s economic estates, is becoming increasingly evident. These innovative models of industrial development exemplify the harmonious coexistence of economic progress and environmental preservation. Given the Philippines’ current challenges concerning water and energy security, the implementation of sustainable practices as demonstrated by AIC in its LIMA Estate, offers a promising path forward.
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In line with the Aboitiz Group’s strong commitment to operate its businesses employing sustainable strategies, the Ab...
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Press Release
Apo Agua continues COVID-19 aid in Davao to help p...
August 13, 2021
Apo Agua Infrastructura, Inc. reinforced its long-standing commitment to ensuring the health and safety of its host co...
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Press Release
How small cells help address connectivity gap, ush...
August 13, 2021
MNOs are looking to further fortify their networks with small cells for 5G upgrades. By providing more targeted network...
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Press Release
PSA, LIMA Estate team up for National ID registrat...
July 23, 2021
To help speed up the registration of Batangueños for the National ID, the Philippine Statistics Authority (PSA) has te...
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Press Release
Transformation of Batangas’ first masterplanned ...
July 14, 2021
Aboitiz-owned LIMA Land, Inc. is capitalizing on the anticipated boom of business process outsourcing (BPO) companies o...
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Press Release
Lipa City, LIMA Land partner for vaccination hub...
June 21, 2021
The Lipa City government is teaming up with LIMA Land, Inc. to set up a vaccination hub within LIMA Estate’s premier ...
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Press Release
Edustria High School at LIMA Estate sets up studen...
June 15, 2021
Despite the challenges students, teachers, and schools are facing today with the ongoing pandemic, Edustria High School...
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Press Release
Aboitiz, MCIAA sustain MEZ II operations throughou...
June 4, 2021
More than a year since the first community quarantine in Lapu-Lapu City, Cebu, Mactan Economic Zone II (MEZ II) continu...
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Press Release
Industrial-anchored townships in CALABA to spur re...
May 31, 2021
The increasing demand for industrial-anchored developments with commercial and residential components in the Cavite, La...
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Press Release
Lima Water build foundations for Smart Water Netwo...
May 17, 2021
To ensure that industrial locators within LIMA Estate will continue to enjoy a reliable and sustainable water supply fo...
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Press Release
Apo Agua, DCWD turn over rainwater catchment and h...
May 6, 2021
Fortifying its commitment to support its host communities, Apo Agua Infrastructura, Inc. (Apo Agua), together with Dava...
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Press Release
Aboitiz InfraCapital, Partners Group team up for c...
April 29, 2021
Aboitiz InfraCapital, Inc. (Aboitiz InfraCapital) has agreed to form a joint venture with leading global private market...
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Press Release
Aboitiz Integrated Economic Centers well-positione...
April 21, 2021
New locators at Aboitiz InfraCapital’s Integrated Economic Centers are well-positioned to avail optimum tax benefits ...
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Press Release
Aboitiz offers commercial lots within LIMA Estate ...
April 16, 2021
LIMA Land, Inc. is launching the next phase of its commercial zone’s transformation, with the introduction of commerc...
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Press Release
Apo Agua achieves 5 million safe man-hours...
April 14, 2021
Apo Agua Infrastructura, Inc. (Apo Agua) through its Engineering, Procurement, and Construction Contractor J.V. Angeles...
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Press Release
GUESS opens its first outlet store in Batangas at ...
March 29, 2021
American clothing retailer GUESS recently opened its first-ever outlet store in Batangas at ‘The Outlets at Lipa’. ...
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Press Release
Davao City Water District, NexCities Project recog...
March 27, 2021
The Davao City Water District (DCWD) and the Newton Prize-winning NexCities Project Team were honored along with 17 oth...
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Press Release
Aboitiz InfraCapital at the forefront of innovativ...
March 16, 2021
The Aboitiz Group, through its infrastructure arm Aboitiz InfraCapital, Inc. (AIC) is championing the country’s capab...
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Press Release
Aboitiz InfraCapital sets P13B CAPEX, allocates P2...
March 12, 2021
Aboitiz InfraCapital, Inc. is earmarking over PhP13 billion in total consolidated capital expenditures (CAPEX) with its...
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Press Release
PH Red Cross partners with ‘The Outlets at Lipa...
March 8, 2021
To further support the country’s mass testing efforts against the COVID-19 pandemic, the Philippine Red Cross (PRC) h...
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Press Release
Aboitiz’s LIMA Land recognizes long-time partner...
March 1, 2021
Shares expansion plans that can generate up to 20,000 jobs LIMA Land, Inc. – operator of LIMA Technology Center in Li...
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Press Release
Handyman opens 177th store in LIMA Exchange, Batan...
February 26, 2021
In line with its goal to have a better, braver and bolder 2021, hardware and improvement store chain Handyman Do-it Bes...
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Press Release
Aboitiz leaders embrace, ‘instill’ innovation ...
February 11, 2021
Aboitiz executives must take a long-term view and further champion innovative strategies to succeed amid and beyon...
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Press Release
Globe partners with Aboitiz InfraCapital to provid...
December 23, 2020
Globe Telecom and Aboitiz InfraCapital (AIC), the infrastructure arm of the Aboitiz Group, join forces in accelerating ...
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Press Release
LIMA Estate poised to be Calabarzon’s next leadi...
December 9, 2020
The Aboitiz Group’s Lima Land, Inc. will expand LIMA Estate in Batangas in response to the increasing demand for ind...
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Press Release
Strict COVID-19 guidelines and open format make Ch...
December 4, 2020
To enjoy shopping and dining with peace of mind this Christmas season, one can go to places that are masterfully design...
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Press Release
Aboitiz businesses optimistic of sustained strateg...
November 4, 2020
Amid the ongoing challenges posed by the Coronavirus Disease 2019 (COVID-19) pandemic, the various business units of th...
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Press Release
Aboitiz unveils expansion plans for West Cebu Indu...
November 3, 2020
New development expected to generate 5,000 new jobs by end of 2022 Cebu Industrial Park Developers, Inc. (CIPDI)—a jo...
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Press Release
Globe, Dito partner with Aboitiz InfraCapital for ...
October 30, 2020
Telecommunications companies Globe Telecom, Inc. and Dito Telecommunity Corporation have partnered with Aboitiz InfraCa...
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Press Release
Aboitiz InfraCapital ready to deploy small cell ne...
October 7, 2020
Aboitiz Group’s infrastructure arm Aboitiz InfraCapital, Inc. is venturing into the small cells business to supplemen...
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Press Release
Lima Water ensures adequate, clean water supply am...
September 18, 2020
Aboitiz InfraCapital’s wholly owned subsidiary Lima Water Corporation (LWC) assured it will continuously provide adeq...
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Press Release
Lima Water laboratory gets DENR accreditation...
July 30, 2020
The laboratory services unit of Lima Water Corporation (LWC) was recently accredited as an environmental testing labora...
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Press Release
Apo Agua ramps up construction for bulk water proj...
July 21, 2020
In line with its commitment to fast track the delivery of safe and sustainable water to Davaoeños, Apo Agua Infrastruc...
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Press Release
Aboitiz underscores long-term sustainability goals...
July 20, 2020
The Aboitiz Group reaffirms its commitment to operate its businesses with a sustainability mindset that upholds best pr...
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Press Release
Lima Water extends support in Batangas to help fig...
June 8, 2020
Lima Water Corporation, the exclusive water and wastewater services provider of Lima Technology Center in Batangas, has...
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Our Businesses
Apo Agua...
May 14, 2020
Apo Agua Infrastructura, Inc. is building one of the Philippines’ largest private bulk water supply facilities throug...
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Our Businesses
LIMA Water...
May 14, 2020
Lima Water Corporation provides end-to-end water and wastewater services for multinational companies based in Lima Tech...
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Press Release
Aboitiz supports BBB anew; heeds call for private ...
May 13, 2020
Aboitiz Group infrastructure unit Aboitiz InfraCapital Inc. welcomes the government’s renewed commitment to pursue ke...
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Sustainability & CSR
Our CSR efforts...
True to our brand promise to Advance Business and Communities, Aboitiz InfraCapital and its business units are committe...
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Sustainability & CSR
Our Sustainability Framework...
Framework To drive sustainability throughout its business, Aboitiz focuses on three key areas based on the triple botto...
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Sustainability & CSR
Sustainability at Aboitiz...
Over the years, sustainability has been our ubiquitous term in covering our environmental management, labor practices, ...
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Press Release
Aboitiz taps Ireland-based daa International for r...
March 27, 2019
Aboitiz infrastructure business unit Aboitiz InfraCapital, Inc. has teamed up with Irish airport operations company daa...
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Press Release
CAAP grants Aboitiz ‘original proponent status...
March 4, 2019
Aboitiz InfraCapital, Inc. (AIC), the infrastructure business unit of the Aboitiz Group, was granted Original Proponent...
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Press Release
Aboitiz InfraCapital, DICT sign MOU for telecommun...
February 8, 2019
Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group, is seeking to build, operate, and maintain...
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Press Release
Aboitiz debuts water business at the 2019 IWA conf...
January 22, 2019
Aboitiz InfraCapital, Inc., the fifth leg and newest business venture of the Aboitiz Group, is optimistic on the opport...
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Press Release
Aboitiz bullish on regional airport projects...
January 8, 2019
Aboitiz InfraCapital, Inc. (AIC), the Aboitiz infrastructure unit, is optimistic that its regional airport projects wil...
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Press Release
Apo Agua holds bulk water supply project construct...
November 26, 2018
Apo Agua Infrastructura, Inc. (Apo Agua), a joint venture company between Aboitiz Equity Ventures, Inc. (AEV) and J.V. ...
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Press Release
Aboitiz secures ‘original proponent status’ fo...
September 28, 2018
Aboitiz InfraCapital, Inc. (AIC), the infrastructure business unit of the Aboitiz Group, has been granted “Original P...
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Press Release
Aboitiz InfraCapital submits unsolicited proposal ...
March 7, 2018
Aboitiz InfraCapital, the infrastructure business unit of the Aboitiz Group, submitted today an unsolicited proposal to...
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Press Release
‘Superconsortium’ eyes NAIA transformation int...
February 13, 2018
Share on Facebook Share on Twitter Share on Google+ Share on Linkedin Share on Pinterest Following the submission of it...
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Press Release
Aboitiz InfraCapital consolidates water investment...
August 3, 2017
The Aboitiz Group has consolidated all its water investments under its infrastructure unit Aboitiz InfraCapital, Inc., ...
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