It’s that time of year to pause and take stock of the steps we’ve taken that bring us closer to achieving our mission. What’s clear to me is that for the FPH Group, we remain steadfast in our commitment to forge collaborative pathways toward a decarbonized and regenerative future.

The urgency of our work cannot be overstated. Every day, we see all over the news the horrific impacts of climate change. The year 2024 is on track to be the hottest year on historical record, and scientists predict an 80% likelihood that the annual average global temperature of at least one year between 2024 and 2028 will already temporarily exceed the 1.5 degrees Celsius limit that was set at COP21.

The extreme heat throughout the year has brought about extreme weather events that have in turn wrought havoc on different parts of the planet. There were deadly wildfires like those experienced in the South American region, then scorching heat waves such as those experienced in India, Mexico, the Middle East, parts of Europe, in the US and in Asia. There were severe droughts experienced in places like South Africa and South America that threatened food security for millions of people. The extreme high temperature has contributed to the alarming rise in sea levels, with sea ice at the poles melting and glaciers retreating all at a faster pace. It’s estimated that sea levels will rise by 20 centimeters between 2020 and 2050, which could forcibly displace up to 1.2 billion people.

The record-breaking levels for ocean heat and acidification have fueled typhoons and cyclones that had stronger winds and brought much heavier rainfall than we’re all accustomed to, causing unprecedented floods and landslides. As we’ve all experienced recently, typhoons have become much more destructive, more frequent, intensify faster with several even hovering over the Philippine area of responsibility almost simultaneously. Between October and November alone, we’ve been battered by six strong typhoons—Kristine, Leon, Marce, Nika, Ofel and Pepito—that caused the loss of lives of at least 160 and severely destroyed many homes, infrastructure, agriculture and livelihood.

Today, no place on the planet is spared from the “unprecedented fury” unleashed by the more frequent occurrence of extreme weather events that’s “supercharged” by climate change. What scientists have been fearing and warning us on the devastating effects of climate change continues to unfold before us, highlighting our own vulnerabilities to the powerful wrath of nature. Our own actions led us to the climate crisis we now face, yet the cost of further inaction to address this crisis head-on is nothing but an existential one for human life on this planet.

All this underscores the urgency to get to a Net Zero carbon emissions world by 2050 if we want to avoid irreversible catastrophe and keep the planet livable. That’s just a short 25 years. In that compressed time frame, expect that we will all witness a massive transformation in how the world works. We will see enormous changes in transportation and mass transit systems, industrial processes, building design and real estate development, agriculture, food production and even consumer buying habits, just to name a few. In the world of energy, they now call this the greatest energy transition in the history of mankind, where we are now building a new global energy system with components we have never built before, and at a massive scale. But we will have to match these with redesigning and rebuilding the physical infrastructure of our daily lives to withstand the harsher climatic conditions that are coming. The world of energy and infrastructure is undergoing a massive evolution or, rather, a massive revolution. There is no other way through this existential crisis for human life and all the signs point in only one direction despite all the byways, detours and distractions we may experience in the years to come.

Amid all these warnings from our angered planet, there are green shoots. If we set aside for a moment the tensions arising from the West Philippine Sea, Alice Guo and the POGOs, we see a China that could have its emissions peak five years earlier than their target of 2030. Whether this is a real watershed moment for the climate fight remains to be seen. But we see them also leading the charge in the new installation of solar and wind capacity and their world-beating technology for batteries and EVs has led to more than half of all cars sold in China being pure electrics. There’s something going on beyond the noise and tensions, saying they continue to forge ahead and now lead in 57 of the world’s 64 most critical technologies, up from just three at the start of the century. As they say, watch this space.

I’ve always believed that the climate crisis, while daunting, also offers many opportunities for those who rise to the challenge. Our mission of “forging collaborative pathways for a decarbonized and regenerative future” encapsulates what our Group aspires to achieve within that narrowing time frame of 25 years. It has provided us tremendous traction and direction these last few years that has exceeded my expectations, and now galvanizes quite powerfully what we will do and, even more critically, what we will not do.

Of course, it’s important to keep in mind that the progression of our mission is not and will never be a smooth and linear path. And even today we see the world’s most powerful country about to be led by some who profess that climate change is not real or not as bad as it’s made out to be. Any massive transformation such as decarbonizing the world will always encounter roadblocks and resistance but finding detours and alternative byways to our destination will always be part of that journey. Amid all the noise it’s always good that we never forget why we’ve chosen this road. We all want to leave a better and brighter world for our children and for future generations. Every step we take in pursuing our mission, no matter how small or insignificant it may seem, makes a world of difference.

I wish you all, your families and loved ones a blessed Christmas and a joyous New Year! Let’s all look forward to 2025 with a renewed sense of purpose for a better future for all.

FEDERICO R. LOPEZ
Chairman and CEO, First Philippine Holdings Corporation