2025 Articles - Suits the C-Suite - Page 2

19 October 2025

Katrina F. Francisco

Navigating uncertainty in the mining and metals industry

In brief:The mining and metals industry is facing heightened operational complexity due to aging mine sites, regulatory pressures, and the need for sustainable practices, which complicate productivity and increase costs.License to Operate (LTO) is becoming crucial as stakeholders demand greater returns, necessitating alignment with environmental, social, and governance (ESG) factors to secure necessary permits and build community trust.Sustainability commitments are facing achievement and measurement challenges, while emphasizing community partnerships and technology for effective sustainability monitoring. “As the mining and metals industry navigates this complex landscape, it must prioritize operational efficiency, stakeholder engagement and license to operate, workforce development, and sustainability.”The mining and metals industry is entering a new phase of uncertainty, with operational complexity identified as the primary risk for 2026, as highlighted in the EY Top 10 Business Risks and Opportunities survey, which gathered insights from 500 senior executives in the sector globally. This article discusses four of the top risks identified in the survey.Operational complexityThe growing complexity in mining operations stems from aging mine sites and the need to replace old mines to meet rising demand. As mines go deeper and ore grades decline, challenges such as geotechnical issues and water management become increasingly intricate throughout the mine's lifecycle. In the Philippines, the implementation of regulations related to environmental, social, and governance (ESG) factors, including watershed management and biodiversity conservation, adds another layer of complexity, although highly necessary, requiring companies to adopt compliance measures. This heightened complexity not only impacts productivity but also raises operational costs and shifts expectations regarding brownfield expansions and the initiation of new mines. Predictability is essential for maintaining investor confidence, securing capital, and ensuring strategic flexibility. Therefore, rethinking mine design and operations to simplify processes while adhering to regulations is crucial.License to OperateLicense to Operate (LTO) is becoming increasingly significant as external stakeholders, including governments and local communities, demand greater returns from mining assets. This shift is driven by rising nationalism and tightening government budgets, compelling companies to reassess their operational strategies. The recent passing of the Enhanced Fiscal Regime for Large-Scale Metallic Mining Act exemplifies this trend.As the focus on LTO intensifies, it becomes clear that both LTO and ESG factors play a crucial role in the permitting process. These elements are increasingly influenced by national objectives, making it essential for mining companies to align their practices with regulatory priorities to secure necessary approvals. Locally, LTO and ESG are intertwined as regulators and the industry work to address past environmental and social issues that have continued to hound the industry. Regulations aimed at biodiversity conservation and aligning the Social Development Management Program with the Sustainable Development Goals will continue to position ESG as a key driver of LTO.Miners have the opportunity to build trust with stakeholders by prioritizing sustainable and ethical practices over mere compliance. By doing what is right, companies can foster stronger relationships and enhance their reputation within the communities they serve. Ongoing collaboration with local communities is vital for success, as engaging with stakeholders not only addresses their concerns but also creates a more sustainable and mutually beneficial relationship.Attracting a skilled workforceThe global mining sector continues to grapple with a significant challenge: a reputation that hampers its ability to attract a diverse and skilled workforce. As the industry evolves, addressing this issue is essential for future success. Companies must focus on mapping talent and predicting workforce needs, transitioning to long-term workforce planning to align with broader mine strategies. This proactive approach will enable organizations to anticipate and meet their staffing requirements effectively.Additionally, there is a pressing need to reevaluate the employee value proposition (EVP). By establishing clear career pathways, mining companies can make the industry more appealing to potential employees. Embracing technology is also crucial; implementing tools that support onboarding and just-in-time learning can help build specialized skills, enhance safety culture, and optimize production processes. By investing in the workforce and fostering a positive work environment, mining companies can improve their reputation and secure the talent needed to thrive in a competitive landscape.Achieving sustainability goalsAs the mining industry faces increasing pressure to adopt sustainable practices, leading companies have set ambitious goals to become nature-positive by 2030. However, measuring progress toward these targets remains a significant challenge. In the Philippines, the voluntary adoption of the Towards Sustainable Mining (TSM) Protocols by the Chamber of Mines and its members demonstrates the industry's strong commitment to sustainability, particularly in areas related to communities and people, climate change and environmental impact.A crucial aspect of achieving sustainability goals lies in forming strong partnerships with local communities, whether Indigenous or not, which is also expected under the TSM Protocols. These collaborations not only help miners meet their sustainability objectives but also play a vital role in maintaining their LTO, as also mentioned above. To enhance the measurement and monitoring of sustainability efforts, the increased use of digital tools and data analytics is essential. By leveraging technology, mining companies can gain better insights into their environmental and social impact and track their progress more effectively.Enhancing resilience for long-term successAs the mining and metals industry navigates this complex landscape, it must prioritize operational efficiency, stakeholder engagement and license to operate, workforce development, and sustainability. By addressing these interconnected challenges, companies not only enhance their resilience but also position themselves for long-term success in an increasingly demanding environment.Katrina F. Francisco is a Sustainability Partner of SGV & Co.This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

13 October 2025

Noel P. Rabaja

Unlocking value through human-centric transactions

In brief:Successful transactions require leaders to prioritize transformative goals over mere deal completion, emphasizing a compelling vision that engages employees and drives long-term success.Addressing the human elements of a transaction is crucial; fostering an environment where employees feel valued and supported significantly enhances the likelihood of successful outcomes.Organizations must be prepared to manage pivotal moments throughout the transaction process, leveraging decisive action and transparent communication to build trust and maintain momentum.“By fostering a bold vision for transformation and creating an environment where employees can thrive, organizations can navigate challenges and enhance performance, ultimately preparing for future transactions and transformations.”Transactions can serve as powerful catalysts for transformation when leaders create the right conditions for high performance. The EY-Parthenon CEO Outlook Survey indicates that 96% of global CEOs plan to engage in some form of transaction in the coming year. These transactions are essential components of corporate strategies, enabling businesses to enhance shareholder value and differentiate themselves in competitive markets. While they present unique challenges, transactions also provide opportunities to accelerate transformation and reshape a company's future.Research from EY identifies three key factors that contribute to successful transactions. First, bold leadership is crucial; 59% of transaction leaders believe that an organization's capacity for transformation is vital for its long-term viability. The more ambitious the vision behind a transaction, the greater the potential for value creation. Second, addressing the human elements of a deal is equally important as financial considerations. Leaders must foster an environment where employees feel valued and engaged. Finally, leaders should be prepared to navigate critical moments throughout the transaction process, as effective management can turn challenges into opportunities.By focusing on these elements, leaders can significantly enhance the value derived from transactions. This article draws on findings from a collaboration between EY and the University of Oxford's Saïd Business School, which examined transformation programs and gathered insights from senior leaders and workforce members involved in transaction-driven transformations.In the Philippines, recent observations indicate a growing trend in mergers and acquisitions (M&A) across various sectors. In particular, there is a lot of investor interest in the consumer sector due to rapid urbanization and the growing middle class. There has also been increased M&A activity in the renewable energy (RE) space following the liberalization of foreign ownership in RE projects. This increase in M&A activities reflects the necessity for companies to consolidate resources and strengthen their competitive position in a rapidly changing market. Such transactions can enhance financial performance, but the company will need to focus on the integration of diverse corporate cultures and the importance of maintaining employee engagement throughout the transition process. Otherwise, the contemplated benefits of the transaction may not be fully realized.Emphasizing bold leadership in transactionsTo maximize value, leaders must prioritize transformative goals over merely completing transactions. Successful transformations involve operational changes that aim to improve performance and drive sustainable growth. However, transactions often face distinct challenges, such as tight deadlines, public scrutiny, and prolonged uncertainty.Organizations frequently focus on finalizing deals rather than pursuing genuine transformation, which can lead to diminished value. Nearly half of transaction leaders report that they do not achieve the expected value from their transactions, with only 46% meeting their innovation key performance indicators (KPIs). Therefore, leaders should concentrate on establishing a transformative vision that engages employees, shifting the focus from mere completion to long-term success. Moreover, fostering a culture of open communication and collaboration can empower employees to contribute ideas and solutions during the transition. This engagement enhances morale and leads to innovative approaches that can drive the success of the transaction. Leaders who actively involve their teams in the process are more likely to achieve desired outcomes and create a sense of ownership among employees.Creating conditions for successEstablishing the right conditions is essential for fostering high-performance environments that empower employees to overcome challenges. A human-centric approach significantly increases the likelihood of successful outcomes. A compelling vision is critical; employees must believe in a purpose that transcends financial metrics. Additionally, adaptive leadership is necessary, as leaders should be present and responsive, actively engaging with teams to navigate the complexities of transactions.Psychological safety is another vital aspect, as leaders must create an environment where employees feel secure and valued. By promoting disciplined freedom, organizations can empower teams to make decisions quickly, facilitating agile responses to challenges. Furthermore, collaboration across departments is essential for effective integration or separation. Leveraging technology purposefully can also help illustrate the potential of the new organization, enabling employees to visualize the benefits of the transformation.Navigating turning points for maximum valueDecisive action is crucial at various stages of a transaction to effectively manage employee turning points. Research indicates that nearly all transactions encounter pivotal moments, with 98% experiencing turning points that necessitate leadership intervention. As transactions become public, organizations must manage heightened uncertainty, and leaders should quickly form a deal team, establish clear governance, and support the workforce through effective communication. Transparency in decision-making is vital for building trust and addressing potential concerns.Once the deal closes, the new leadership team must align with the transformative vision and establish new ways of working. Providing emotional support for employees is critical, as many may struggle to adapt to the new organizational identity. Celebrating early successes can reinforce the new entity's direction and build confidence among employees. Embracing transformationTransactions have the potential to significantly reshape a business' future. The approach leaders take in managing these deals will greatly influence the value derived from them. By fostering a bold vision for transformation and creating an environment where employees can thrive, organizations can navigate challenges and enhance performance, ultimately preparing for future transactions and transformations.Noel P. Rabaja is the Deputy Managing Partner, Strategy and Transactions Leader, and Markets Leader of SGV & Co.This article is for general information only and is not a substitute for professional advice where the facts and circumstances warrant. The views and opinions expressed above are those of the author and do not necessarily represent the views of SGV & Co.

03 July 2025

Kristel Frias

Wat Hafen Vela

Insurers have a unique opportunity to drive innovation and growth by addressing protection gaps in the market. In the Philippines, growth in the country’s insurance penetration rate is at 1.89% in the first quarter this year from 1.78% in the same period in 2024. While the momentum is expected to carry throughout the remainder of the year, it is still below the global rate of 6%. As reflected in the insurance premium expense of each Filipino at P1,094.94 from P965.56, insurance density of the country also improved by 13.4%. Per Statista, the insurance industry’s forecast in Southeast Asia could grow by 3.5% annually until 2029. This optimistic forecast is attributable to the global silver tsunami expected to triple by 2050. he "silver tsunami" refers to the significant demographic shift as the Baby Boomer generation reaches retirement age, which will drive demand for financial planning services, life insurance, and health insurance with integrated wellness programs.Despite promising growth, geopolitical tension and trade wars are also expected to result in economic shocks this year, requiring strategic and operational flexibility from insurers. Coupled with increasing risks from cyber threats, climate change, and demographic shifts leading to a growing retirement savings gap, insurers are called to rethink their strategies. testAccording to the 2025 Global Insurance Outlook, significant protection gaps exist, particularly in cyber and climate-related risks, where a staggering 99% of cyber losses and 60% of natural disaster losses remain uninsured, according to insurance company Munich Re’s Cyber Survey 2024 and research publication Swiss Re Sigma, respectively. In 2024, the World Bank reported that natural disasters shed $3.5-billion Philippine assets yearly while direct losses to both public and private assets have reached more than 1% of the gross domestic product (GDP). Additionally, the growing retirement savings shortfall presents further avenues for value creation. A strategic focus on enhanced data utilization and modernized technology is essentia

04 April 2025

Not available

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