2006 Guiamaras Oil Spill I.

Background

August 11, 2006 the oil tanker t the Guimaras Strait off the coast of the Guimaras and Negros Occidental provinces, causing some 500,000 liters of oil to pour into the strait. Siphoning the remaining 1.5 million liters from the sunken tanker, at a depth of more than 600 meters, was scheduled for March 2007. The incident causes adverse effect marine sanctuaries and mangrove reserves in three out of five municipalities in Guimaras Island and reached the shores of Iloilo and Negros Occidental. The oil spill occurred in the Visayan Sea which is considered a rich fishing ground that supplies most of the fisheries' demand for the entire country. (NDCC, August 2006). As of August 22, 2006, the Philippine Coast Guard says that the spill has affected 20 communities in 4 municipalities in Guimaras. It also threatens 27 communities in Iloilo province and 17 others in Negros Occidental. II. CSR Activities

a. Environmental Concern
The incident result an adverse effect to the ecosystem and marine life, the company adheres to address a full help in rehabilitation of the islands including stretches of pristine beaches and other area nearby the island to make zero oil pollution. Includes in the rehabilitation is total clean up that aims to restore the marine ecosystem and planting of mangroves that serves as the support system of marine life. b. Heath Issue Oil spill exposed the people to dangerous airborne toxins directly or indirectly. exposure to oil can be linked to nausea, headache, dizziness, and eye and throat irritation, as well as both upper and lower respiratory tract symptoms and some allergic reactions to the toxins. The company commit itself to ensure that n one is harm from oil spill incident and the continuous commitment will undertake until it is cleared that no one is affected to the incident for its everybody rights to have a safe and healthy life. Medical checkup will be conducted on monthly basis, likewise the medicines and vitamins will be provided to the constituents who are affected by the incidents.

c. Living Support Due to the incident, it is a fact that there are people and families that directly affected by the incident, people in the area primarily get their life support through fishing and other marine products. Thus, the company rest assured to extend help to these people on undertaking alternatives livelihood initiatives like vegetable production, agro-forestry, craft workshop and tourism activities. The said activities could be a help not just for short term but foreseeing its long term effect to the residents. III. CSR expected Output
Environment Mangroves preserve water quality and reduce pollution by filtering suspended material and assimilating dissolved nutrients. Health Mangroves minimize the effect of global warming that much affect the human being. Living Support Mangrove forests and estuaries are the breeding and nursery grounds for a number of marine organisms including the commercially important shrimp, crab and fish species. Hence, it has direct economic benefits specifically in fishing industry. Target beneficiaries Residents of the affected area.

Activities 1. Mangrove Planting

2. Follow up cleaning and assessment of level of oil pollution present in the body of water and air.

Subsequent clean up ensures and checks the decrease the level of pollutants present in the air and body of water. It restores and rehabilitates the marine life and the ecosystem.

3. Medical Mission

People health is much more important, thus, it ensures that no one is harm and the continuous overseeing of their health gives much more assurance that any adverse health effect is much attended. Series of check up will be a means of sincere and good intentions that companys mission is to ensure that healthy living is the number one

Residents of the affected area.

Good health means good life, the company sway for a healthy body and profuse life. Thus, healthy body, healthy mind offers an abundant life.

Residents of the affected area.

concern. Free vitamins and medicines will be provided. 4. Livelihood Program Due to subsequent fishing ban, it is a fact that many families suffer for economic crisis, and the company would like to extend a help that will help the residents in providing good life to their families. Residents of the affected area.

IV.

Timeframe, Budgetary Requirement, KPI and Reportorial Requirements

a. Gantt Chart City or Town Environmen t Health Livelihood b. Budgetary Requirement Activities Environment Health Livelihood Initial Budget 20M 10M 10M Subsequent Budget 5M 2M 3M Aug-Oct Nov-Dec Jan-Mar Apr-Jun Jul-Sept

c. Key Performance Indicator

Category Environme nt Key Performance Indicator 1. Zero free of any air toxins and water pollutions. 2. Number of mangroves planted. 3. Status of fishing industry. Frequency of Report CSR Report-Monthly CSR Flash UpdateWeekly

Health

Livelihood

4. Status of overall marine ecosystem. 1. Rate of ailments related to incidents after first three medical missions. 2. Rate of ailments related to oil spill incidents after the completion of medical checkup series. 3. Rate of peoples awareness to any hazards that may cause to the residents as a result of the oil spill. 1. Capacity of affected families to cover all their expenses. 2. Rate of surplus on the income of families affected by oil spill incident. 3. Numbers of livelihood program, seminars, and forums that has been conducted. 4. Economic alleviation after the conducted trainings and seminar on alternative means of living.

CSR Report-Monthly CSR Flash UpdateWeekly

CSR Report-Monthly

2. All activities are equally important and comply with various aspect of consideration to take, with regards to company compliance with legal aspect the environment issue and health issue are matter which are part f companys compliance while ethically and morally, the company oblige to extend help to those people affected by the oil spill to move forward that could give another means of living that could sustain the needs of their families. 3. In order to ensure that activities are carried as it was planned and will continuous running smoothly for the good of everybody, there is a need to established a group coming from the company, community and local government to ensure that the plan are taken benefiting all the concern group. Likewise, any variances or deviation to the plan must be carefully study and look up to immediately so to avoid any problem and everything is in balanced. Also, make a livelihood project that could sustain he needs of the residents in a long term basis. 4. A company that established on ethical value creates not only customers but a name that marked in peoples mind, thus CSR whether it is a long term plan or short term the fact that company extend its blessing to the community creates a strong external relationship, mitigates operational impact, and likewise promotes competitiveness and innovation being a sustainable business model. However, for budgetary requirement, we know that CSR is very costly, for social issue never ends, thus, the needs of

people. It requires a substantial amount from income of the company and for its sustainability expect a subsequent expenditures. So, its better to have a well defined financial planning as to disbursement and allocation. 5. It is just right to extend an apology to the public that will show the companys sincerity and not just by obligation. Below is a sample statement that will explain the side of the company and the actions the same will take. To People of Guimaras and near affected area: We at Petron would like to extend our deepest apology for the incident happened in Guimaras strait that threatens our marine ecosystem and likewise the health and life of our brother and sister in affected areas. We assure you that we are doing our best to attend to the needs of people immediately and we open our communication to media, government agency and most of you people whos very much affected.