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UNEP-TNT Toolkit for C Philippines Pilot Case Meralco South Dist Clean Fleet Strategy Developm e Study Report tribution Services April 19, 2009 1 | Page ment

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Page 1: Meralco Case Study Report

UNEP-TNT Toolkit for Clean Fleet Strategy

Philippines Pilot Case Study

Meralco South Distribution Services

oolkit for Clean Fleet Strategy Development

Case Study Report

Meralco South Distribution Services

April 19, 2009

1 | P a g e

Development

Page 2: Meralco Case Study Report

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Contents

I. Introduction ................................................................................................................................. 3

Background ................................................................................................................................... 3

UNEP-TNT Clean Fleet Toolkit ...................................................................................................... 4

About the Organizations Involved ................................................................................................ 4

II. Initiation of a Green Fleet Program ............................................................................................. 6

Building the Business Case for Moving towards a Cleaner Fleet.................................................. 6

Creation of a Project Team ........................................................................................................... 6

Measuring the Baseline ................................................................................................................ 7

Problem Analysis .......................................................................................................................... 8

Setting the Objective .................................................................................................................. 10

Choosing the Appropriate Measures .......................................................................................... 11

III. Implementation ......................................................................................................................... 13

Eco-driving .................................................................................................................................. 13

Improved Maintenance of Vehicles ............................................................................................ 16

Re-fleeting: Right Sizing and Specs Modification ....................................................................... 18

IV. Initial Results .............................................................................................................................. 19

V. Success Factors and Challenges ................................................................................................. 20

VI. Moving Forward ......................................................................................................................... 21

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I. Introduction

Background

Road fleets are essential for the movement of goods and people, but are also a major concern for the

environment. It is estimated that road vehicles consume 60% of the world’s petroleum supply and

contributes 23% of the total Carbon dioxide emissions worldwide. In the Philippines, road transport

contributes 24% of the total CO2 emissions from fuel combustion (2007), according to the International

Energy Agency (IEA).

Fig.1: 2007 CO2 Emissions from Fuel Combustion in million tons CO2 Source: IEA (2009)

Road vehicles are also the main sources of air pollutants such as particulate matter, Nitrogen dioxide

and Sulphur dioxide which adversely affect the health of the people as well as the environment. A study

done in Metro Manila, reveals that approximately 70% of the particulate matter pollution in the Metro

comes from traffic and road vehicles.

Fig. 2: Particulate Matter Pollution in Metro Manila Source: Public Health Monitoring of the Metro Manila Air Quality

Improvement Sector Development Program (2003 figures)

The road transport sector shall continue to be a major consumer of energy and a major source of GHG

and air pollutant emissions as the trends in vehicle ownership and vehicle use continue to increase. In

the Philippines, the total number of vehicles is expected to increase five-fold from 2005 to 2035.

Other Transport

2.06

3%

Other sectors

4.22

6%Other energy

industries

4.66

6%

Manuf. industries

and construction

10.58

15%

Road Transport

24.4

33%

Main activity

producer

electricity and heat

27.27

37%

0%

20%

40%

60%

80%

100%

GS, background MO, Mixed NPO, Traffic PGH, Commercial Valenzuela, Industrial Las Pinas

Percentage Contribution of Source Types to Particulate Matter Pollution in Metro Manila

Traffic Biomass Burning Construction Soil

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Fig.3: Vehicle Number Projections for the Philippines Source: Segment Y

Both public and private fleets which utilize road fleets in their operations can contribute towards

alleviating the negative impacts of road fleets by developing and adopting clean fleet management

programs which can also deliver financial savings, lower emissions and better public image.

UNEP-TNT Clean Fleet Toolkit

The “Toolkit for Clean Fleet Strategy Development” (herein referred to as “toolkit”) developed by the

United Nations Environment Programme – Partnership for Clean Fuels and Vehicles (UNEP-PCFV) and

TNT, aims to assist managers of road fleets in moving towards cleaner fleets by providing tools which

can be used to evaluate the impacts of road fleets and develop practical strategies and scenarios for

corrective and cost-effective action. It can play a key role in enticing organizations, particularly in

emerging economies, to develop and adopt clean fleet management programs.

The toolkit was formally launched in Asia at the 2008 Better Air Quality (BAQ) Conference in Bangkok,

Thailand. In the Philippines, the toolkit was launched last October 2009, where several companies

expressed interest in using it. Meralco South Distribution Services (SDS), an electricity distribution

company which services the Southern portion of the Luzon island in the Philippines, became the first

Philippine company to pilot the toolkit. This report details the implementation and the impacts of the

measures chosen by Meralco through the use of the Toolkit.

Please visit http://www.unep.org/tnt%2Dunep/toolkit/impacts/tool18/index.html to access the online

version of the toolkit. You can download all the materials from the website.

About the Organizations Involved

Meralco

Meralco is the largest electricity distributor in the Philippines. It sold 26,799 gWh of electricity to a

franchise covering 9,337 square kilometers, where around 23 million people or about a quarter of the

total Philippine population reside. It served almost 4.6 million customers in 29 cities and 82

municipalities.

Business establishments in the franchise produced almost 50 percent of the country’s gross domestic

product (GDP), with around 32 percent produced in Metro Manila alone.

0

5,000,000

10,000,000

15,000,000

20,000,000

25,000,000

2W 3W PC Jeepney LCV HCV + Bus

2005

2010

2015

2020

2025

2030

2035

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The company has 30 business centers and 10 sector offices in the central, north and south areas of the

franchise to attend to the needs of its customers.

Meralco South Distribution Services (Meralco SDS) serves the southern portion of the Luzon island. It is

the main proponent of this pilot project. Currently, its fleet is composed of more than 300 vehicles,

mostly passenger vehicles and trucks.

UNEP-PCFV

The Partnership for Clean Fuels and Vehicles (PCFV) assists developing countries to reduce vehicular air

pollution through the promotion of lead-free, low sulphur fuels and cleaner vehicle standards and

technologies.

Clean Air Initiative for Asian Cities

The Clean Air Initiative for Asian Cities (CAI-Asia) is a regional non-government organization working towards

livable cities and cleaner air in Asia. It was established as a joint initiative by the Asian Development Bank,

World Bank, and the US United States – Asia Environmental Partnership (a project of USAID) in 2001. CAI-Asia

has been cooperating with UNEP-PCFV in disseminating this toolkit under the “Asia Clean Fuels and Vehicles

Programme.”

Philippine Business for the Environment

The Philippine Business for the Environment (PBE) is an environmental non-profit organization established in

1992 by private individuals with the mission to help Philippine industry address its environmental concerns

and responsibilities. PBE has cooperated with CAI-Asia in rolling out the toolkit for private companies in the

Philippines as the main conduit to reach the private sector companies in the country.

First Philippine Holdings Corp.

First Philippine Holdings Corporation (First Holdings) is a holding company based in the Philippines whose

core businesses are in power generation and distribution, with strategic initiatives in manufacturing, property

and infrastructure. Meralco is the power distribution associate of First holdings. The toolkit was first

introduced to Meralco during the “Clean Fleet Management and Eco-driving Workshop” held last March 2009

for the companies under First Holdings. The workshop was organized by CAI-Asia, PBE and the Business

Excellence Group of First holdings.

Partnership for Clean Air

The Partnership for Clean Air (PCA) is a multi-sector network in the Philippines with organizational members

from government, civil society, academic institutions and private sector. PCA’s mission is to promote air

quality management as a multi-stakeholder effort in the Philippines. It is the local network of CAI-Asia in the

Philippines and supported the activities of CAI-Asia on clean fleet management in the country.

Isuzu Motors Philippines

Isuzu Motors Ltd. is a car, commercial vehicle and heavy truck manufacturing company, based in Tokyo

and has operations in the Philippines. They are a vehicle supplier for Meralco SDS and has given the

train-the-trainers training on ecodriving for Meralco SDS.

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II. Initiation of a Green Fleet Program

Building the Business Case for Moving towards a Cleaner Fleet

Meralco’s vision is “to be a world-class company and the service provider of choice.” It recognizes that

environmental protection is an integral part of providing world-class service to its customers. Meralco

SDS, after its ISO 14001 and OSHAS 18001 accreditation last March 2009, realized that they wanted to

be more pro-active in realizing its Environment, Safety and Health (ESH) policy statement and do more

than just comply with the standards. This is consistent with Meralco’s Environment, Safety and Health

Policy which states that it shall – “prevent pollution by optimizing the use of natural resources and

minimizing the generation of waste.”

Meralco SDS identified fuel efficiency as a key indicator in the Environment, Safety and Health

Management System (ESHMS) covenant. Lowering down the fuel use of vehicles makes business sense

since it comprises a big portion of Meralco SDS’ total fuel expenses1.

Creation of a Project Team

With no existing program on fuel consumption monitoring and reduction at the start of the project,

Meralco SDS saw the need to create a team which will focus on improving fuel efficiency of the vehicles

and help the ESHMS attain its goal. The team was creatively named as UTAK-BERDE. The name literally

translates to “green-minded” in English but pertains to “green” as being eco-friendly. UTAK-BERDE

stands for United Towards Keeping A BalancEd and pRotecteD Environment.

Representatives from different divisions have been selected to become a part of the team such as the

fleets, human resource development, safety and environment management and logistics process

management. ~ Table 1: Team Composition

Position Name Division

Team Leader Andy del Rosario Fleet, Logistics

Team Member Paul Salonga San Pablo Fleet, Logistics

Team Member Merong Romero Sta. Rosa Fleet, Logistics

Team Member Rommel Fajardo Dasmarinas Fleet, Logistics

Team Member Cesar Palmaria Sta. Rosa Fleet, Logistics

Team Member Norman Beran OH, Logistics

Team Member Eric Gonzales HRD, Training Development Administration

Team Member Jenny Diokno Safety and Environment Management

Team Member Mark Manalo Safety and Environmental Management

Team Member AJ Angeles Logistics Process Management

Sponsor2 Ronnie Nieva Head, Logistics, South DS

Sponsor Reynaldo Sacdalan Head, Safety and Environment Division

Sponsor Rita Bantigue Head, HRD-Training Development Administration

Sponsor Ricardo Gonzales Head, Logistics Process Management

Project Head Fernando Geluz Head, South Distribution Services

1 Fuel expenses comprise around 40% of the total operating costs of Meralco SDS.

2 Sponsors are from the management who assess and endorse/reject the propositions of the team.

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Measuring the Baseline

The team collected 2008 data on fuel consumption and kilometers-driven for the individual vehicles of

the fleet. The data were extracted from the encoded vehicle equipment authorization form (VEA)3 and

the authority to withdraw fuel (AWF) form.4

Using the data extracted from the forms, it was found out that the fleet-wide average fuel efficiency is

4.95 km/liter in 2008.5

Table 2: Fuel Efficiency of Selected Vehicle Types in Meralco SDS (2008)

Type Fuel Efficiency

(km/liter)

Basket Truck 2.18

Car 7.52

Derrick Truck 2.95

Emergency Pick-up 2.95

Shuttle bus 7.97

Stake truck 2.97

Stake truck with Hiab 2.67

Utility Pick-up 8.30

Van 6.87

Aside from the collection of vehicle-related data, making use of a questionnaire prepared by CAI-Asia in

the local language, the Meralco SDS team conducted a drivers’ survey to gather information on the

awareness of the drivers on fuel efficient driving and on how the vehicles affect the health of the people

and of the environment. The survey results became inputs in determining the focal areas for the eco-

driving seminar held later on.

Fig.4: Sample Responses from the Drivers’ Survey

3 A trip ticket which the employees need to fill up whenever they are going to use a vehicle for an official business

activity. It contains information on the trip including the odometer reading during the time of exit. 4 A form which is filled up by employees whenever they withdraw fuel from the gas station. It also contains

information on the odometer readings of the vehicles. 5 There were 321 vehicles in Meralco SDS’ fleet last 2008.

192

42

3

0

50

100

150

200

Yes, it impacts it

substantially

Yes, but the

impact is

minimal

No

nu

mb

er

of

resp

on

de

nts

Do you think that driving style affect the fuel consumption

of a vehicle?

190

44

3

0

50

100

150

200

Yes, it impacts it

substantially

Yes, but the

impact is

minimal

No

nu

mb

er

of

resp

on

de

nts

Do you think that driving style affects the amount of

emissions that a vehicle emits?

Page 8: Meralco Case Study Report

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The UNEP-TNT Toolkit was used by the team to estimate the emissions that their fleet generated in

2008. The toolkit provides figures for CO2 and criteria air pollutants ( PM10, NOx, SOx, VOCs and CO). It

utilizes basic fleet information such as fuel consumption and kilometers driven by the different types of

vehicles. The emissions figures generated by the Toolkit are only indicative as the inputs needed are

very basic, as seen in Table 3. However, the value of these indicative figures lies on the fact that they

provide a picture of the impacts that are being generated by a fleet’s vehicles on the environment and

people.6

Table 3: 2008 Vehicles and Vehicle Activity

Numbers km/year liters consumed

Pass.cars Petrol Pre-Euro 16.00 131,361.00 22,118.00

Pass.cars Euro-1 and Euro II 11.00 105,848.00 9,406.00

Pass.car diesel - old 130.00 1,683,311.00 255,471.85

Pass.car diesel with PM filter 43.00 497,785.20 66,457.06

Light trucks pre-Euro - - -

Light trucks Euro I 35.00 580,669.00 115,130.37

Light trucks Euro II - - -

Light trucks III and Above - - -

Heavy duty trucks pre Euro 82.00 556,913.00 240,364.44

Heavy duty trucks Euro I - - -

Heavy duty trucks Euro II 4.00 43,495.00 17,501.00

Heavy duty trucks Euro III and Above - - -

Motorcycles 4-stroke - - -

Motorcycles 2-stroke - - -

Bus pre-Euro - - -

Bus Euro I - - -

Bus Euro II - - -

Bus Euro III and Above - - -

Total 321.00 3,599,382.20 726,448.72

The table below shows the baseline emission figures for the fleet of Meralco in 2008. The old passenger

diesel cars and the pre-euro heavy-duty trucks are the biggest contributors.

Table 4: 2008 Fleet Emissions (Tons)

CO VOC NOx SOx PM10 CO2

Pass.cars Petrol Pre-Euro 0.62 1.16 0.12 0.01 0.00 51.98

Pass.cars Euro-1 and Euro II 0.09 0.08 0.01 0.00 22.10

Pass.car diesel - old 1.46 0.32 0.76 0.44 0.34 664.23

Pass.car diesel with PM filter 0.33 - 0.30 - 0.07 172.79

Light trucks pre-Euro - - - - - -

Light trucks Euro I 0.52 0.11 1.12 0.15 0.10 299.34

Light trucks Euro II - - - - - -

Light trucks III and Above - - - - - -

6 CAI-Asia did some slight modifications to the toolkit so as to incorporate emission factors that are based from

studies done in Asia. Sample sources are the emission factors from the “Development of Integrated Emission

Strategies for Existing Land Transport (DIESEL) Project in Bangkok and the Emission Factor Database by the Central

Pollution Control Board of India. The emission factors are estimates of fleet wide averages and are to be used with

caution.

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Heavy duty trucks pre Euro 5.02 0.92 4.70 0.38 0.88 624.95

Heavy duty trucks Euro I - - - - - -

Heavy duty trucks Euro II 0.12 0.07 0.28 0.03 0.01 45.50

Heavy duty trucks Euro III and

Above - - - - - -

Motorcycles 4-stroke - - - - - -

Motorcycles 2-stroke - - - - - -

Bus pre-Euro - - - - - -

Bus Euro I - - - - - -

Bus Euro II - - - - - -

Bus Euro III and Above - - - - - -

Total 8.18 2.66 7.30 1.01 1.40 1,707.15

Problem Analysis

Meralco SDS utilized several problem analysis tools that aided them in identifying a holistic strategy to

help achieve better fuel efficiency from their vehicles and therefore lower fleet emissions as well. The

team identified a list of most probable root causes of low fuel efficiency and used several data collection

methods in order to assess the validity of the causes.

Table 5: Most Probable Root Causes of Low Fuel Efficiency of the Fleet

Most Probable Root Causes Findings Decision

Preventive maintenance is sometimes

scheduled in days when the vehicle is

to be used

Statistical analysis of the scheduling of the preventive

maintenance shows that there is need to schedule preventive

maintenance activities during off-duty periods

Real true cause

The schedule of the fleet is not

balanced

Not valid. Upon review of actual preventive maintenance

activities of the Meralco SDS, balance in vehicle type and area

assignment was strictly observed

Not a a real true

cause

Schedule is not properly forwarded to

the user of the vehicle

Not valid. Review of the receiving copies of the schedule

shows that all notices were duly received and noted

Not a real true

cause

No standards are being followed when

doing preventive maintenance

Interviews with the mechanics reveal that they have different

understandings of what preventive maintenance is and what

things are to be done

Real true cause

Materials are not properly balanced Valid. Actual vehicle inspection indicates presence of

overloaded vehicles left at parking area.

Real true cause

Vehicle users don’t know the effect of

overloading on the vehicle

Valid. Upon interview of vehicle users, the reason why they

are not returning excess materials is that these may come in

handy during certain situations without consideration to the

effect of overloading on fuel consumption.

Real true cause

Vehicle users don’t know the proper

tire pressure of their vehicles

Valid. Interviews reveal that the users just guess the level of

tire pressure of the vehicles

Real true cause

Vehicle users don’t know how to use

tire guage

Not valid. Interviews reveal that they know how to use a tire

gauge, they just don’t know the right tire pressure of the

vehicles

Not a real true

cause

Fuel intensive driving habits are not

corrected during the driving seminar

Valid. Currently, fuel efficiency is not part of the driving

seminar

Real true cause

Incorrect vehicle distribution Valid. Some vehicles are inappropriate for the need of some

offices.

Real true cause

Driving style is not assessed during the

renewal of the authorization to drive

Valid. These are not currently being assessed. Real true cause

Fuel efficient driving techniques are not

part of the driving seminar

Valid. It is not part of the existing driving seminar. Real true cause

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The team also did a second level validation by carrying out experiments on the effect of engine tune-up,

speed, tire pressure and overloading on fuel efficiency. The results of the experiments validates the

positive impacts of engine tune up, driving at economical speeds (70kmph), proper tire pressure and

overloading prevention.

Fig.5 : Validation of Factors for Eco-driving

Based on the vehicle count, kilometers driven and liters of fuel consumed, it was identified that the

priority vehicle types are: emergency pick-up trucks, utility pick-up trucks, vans and basket trucks. The

table below depicts the kind of scoring system that Meralco SDS utilized to be able to identify the

priority vehicle types. The highest scoring vehicle types are the ones to be given priority.

Table 6: Scoring System for Identifying the Priority Vehicle Types

Scoring Count Kilometers Fuel consumption Fuel efficiency

1 <22 <192,000 <24,000 13-15

2 23-44 192,001-384,000 24,001-48,000 10-12

3 45-66 384,001-576,000 48,001-72,000 7-9

4 67-88 576,001-768,000 72,001-96,000 4-6

5 89-110 768,001-960,000 96,001-120,000 <3

Setting the Objective

0 2 4 6 8 10 12 14

km/liter

FX gas

L200 diesel

Engine Tune Up

1st Run 2nd Run

0 2 4 6 8 10 12 14

km/liter

Adv

NKR

Economical Speed

1st Run 2nd Run

Findings:

Average improvement for simulating the effect of running at 90kph and 70kph is 49%.

Decision: Valid factor for eco driving.

Findings:

Average improvement for the simulation done before and after engine tune up is 142%.

Decision: Valid factor for eco driving.

0 2 4 6 8 10 12 14

km/liter

FX

NKR

Tire Pressure

1st Run 2nd Run

0 2 4 6 8 10 12

km/liter

Adv

NKR

Overloading

1st Run 2nd Run

Findings:

Average improvement for simulating the effect of overloading on vehicle fuel consumption is 16%.

Decision: Valid factor for eco driving.

Findings:

Average improvement measured for running a vehicle with under tire pressure then comparing it with proper tire pressure is 73%.

Decision: Valid factor for eco driving.

Page 11: Meralco Case Study Report

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Using the 2008 fuel efficiency figures of the fleet, Meralco SDS utilized the “objective setting formula” to

derive an achievable and realistic objective. The objective setting formula used was:

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4.95��

����� � 70% � �4.95

��

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5.2��

���� !� �""�!������ # 5% ��"�!������ $�!� 2008 �� &��

Wherein:

Baseline : 2008 average fuel efficiency for the Meralco South DS Fleet

Entitlement : best fuel efficiency in 2008 (San Pablo Fleet)7

The toolkit was also used by the team in estimating the financial and emissions savings from a 5%

reduction in fuel use by their fleet. This initial target translates to 33,000 liters of fuel saved amounting

approximately to Php 1.3 million (or US$29,000).

Choosing the Appropriate Measures

The UNEP-TNT toolkit guided the UTAK BERDE team on the choice of appropriate strategies to reduce

their fleet’s fuel consumption and ultimately its emissions.

Table 7. Measures for Reducing Emissions in the UNEP-TNT Toolkit

Aspect Measure

Drivers and Maintenance Improved Maintenance

Eco-driving

Fuels

Unleaded Petrol

Low-sulfur diesel

Bio-fuels

Retrofit Diesel Oxidation Catalysts

Diesel Particulate Filters

New Vehicles

Switching to diesel vehicles

Hybrid electric vehicles

CNG Vehicles with emission controls

Fuel cell with renewable hydrogen

4-stroke motorcycles

Several factors were considered by the team in choosing specific strategies to increase fuel efficiency

and lower fleet’s emissions. They wanted to implement measures that cost that are doable and are

financially feasible. The team deemed that implementing eco-driving training and better maintenance of

vehicles were the appropriate strategies. They also implemented a gradual re-fleeting process using the

UNEP-TNT Toolkit as a guide in choosing the vehicle replacements.

Eco-driving training was chosen because it does not only create fuel savings and lower emissions, it also

creates a strong awareness about the importance of driving styles and their impacts on the environment

and on safety. Better maintenance of vehicles was chosen since it is an integral part of having a cleaner

7 Meralco SDS is composed of different fleets defined by the different business responsibility units (San Pablo,Sta.

Rosa, Dasmarinas)

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fleet. No matter what the technology of the vehicle is, or how the driver behaves, fuel efficiency and

emissions are greatly impacted by the condition of the vehicles and how they are maintained. Vehicle

re-fleeting was also chosen since it impacts the long-term direction of the fleet itself and was aimed at

replacing old and inefficient vehicles.

The details of the proposed solutions to the real true causes of low fuel efficiency in Meralco SDS are

given in the table below:

Table 8: Analysis of the Most Probable Root Causes and Proposed Solutions

Most Probable Root Causes Proposed Solutions

Preventive maintenance is sometimes scheduled in days when

the vehicle is to be used

Modification of schedule to coincide with the user’s day-

off

No standards are being followed when doing preventive

maintenance

Create a standard checklist for preventive maintenance

Materials are not properly balanced Implementation of vehicle presentability and good house

keeping program

Vehicle users don’t know the effect of overloading on the

vehicle

Conduct an eco-driving seminar and include this in the

presentations

Vehicle users don’t know the proper tire pressure of their

vehicles

Fabrication and installation of a tire pressure guide near

the air compressor stations

Fuel intensive driving habits are not corrected during the

driving seminar

Incorporate eco-driving with the existing defensive driving

seminar

Incorrect vehicle distribution Vehicle right sizing and modification of specifications

Driving style is not assessed during the renewal of the

authorization to drive

Conduct a refresher course which includes proper driving

habits (with eco-driving) prior to the renewal of the

authorization to drive

Fuel efficient driving techniques are not part of the driving

seminar

Incorporate eco-driving with the existing defensive driving

seminar

The implementation of these measures is expected to achieve the following values that are important to

Meralco SDS:

1. Fuel Cost Savings

2. Reduced Carbon Dioxide Emissions

3. Lower Vehicle Repair Cost

4. Improved Vehicle Availability

5. Higher Productivity

6. Regulatory and Environmental Compliance

7. Corporate Image building

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III. Implementation

Eco-driving

Training drivers on “Eco-Driving” saves fuel, reduces emissions, reduces vehicle maintenance and

reduces the probability of accidents. Eco-driving refers to a driving style which focuses on proper

acceleration, braking and usage of the clutch and the shift stick, as well as thinking ahead in traffic. With

improved driver behavior, there are great fuel, emissions, as well as safety benefits. Better driving also

saves on maintenance costs such as those for brakes, clutches and vehicle suspension.8

Initial Clean Fleet and Eco-driving Workshop

The First Philippine Holdings Corporation, the holding company of Meralco, partnered with CAI-Asia and

the Philippine Business for the Environment in conducting a “Clean Fleet Management and Eco-driving

Workshop” last March 2009. Thirty participants representing ten companies under the First Holdings

attended the event, including Meralco SDS. They expressed their interest in piloting the Toolkit and use

it to develop strategies to move towards a cleaner fleet.

Eco-driving Road shows

To increase the awareness of the whole Meralco SDS on eco-driving, the team conducted eco-driving

road shows. These are a series of classroom-type training sessions on the importance of proper driving

habits and their impacts on fuel efficiency and emissions which were incorporated during the regular

general meetings on environment, safety and health. The target audience for these road shows is not

limited to the official drivers of the company, but everyone in the company, particularly employees who

drive vehicles.

Train-the-trainers Training

A train-the-trainers training was held to quickly develop the internal capacity of Meralco SDS in giving

eco-driving training. The participants composed mainly of the heads of the different fleets in the

different business responsibility units9. They would be tasked later on to deliver the training to the

drivers of Meralco SDS, around 400 of them.

Presentations on the importance of proper driving habits and its impacts on the environment and the

citizens were given in the morning. An actual “baseline” driving exercise then follows wherein the

participants are asked to drive as they normally would. Isuzu installed equipment on the testing vehicles

which measures the real-time fuel consumption of a vehicle.

A presentation on the eco-driving tips is then given to the participants. After the presentation, they

again undergo another actual driving exercise. This time, they would need to apply the tips that were

given during the presentation, guided by an instructor.

8 UNEP, TNT. Clean up your Fleet Textbook.

9 These are the different business areas of Meralco SDS (San Pablo, Sta. Rosa and Dasmarinas)

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The graph below10 depicts the fuel efficiency achieved by selected participants during and after the

presentation on eco-driving tips. It clearly shows the improvement achieved by the drivers when the

eco-driving tips were applied.

Fig.6: Eco-driving Training Results

Training of Drivers

A series of eco-driving training workshops were held (and are continuously being scheduled) for the

authorized drivers of Meralco SDS. The trainings are being done by the initial set of participants who

attended the train-the-trainers workshop. Since the fuel consumption-measuring equipment initially

lent by Isuzu during the train-the-trainers training is quite expensive, the team had to think of a practical

and creative way to measure the fuel efficiency of the vehicles during the actual driving exercises. The

exercise would start off with loading up the vehicle full tank11 and setting the odometer to zero. The

driving exercise commences and once the vehicle returns, it is filled up again with fuel. The amount of

fuel that is withdrawn once the vehicle returns is assumed to be the amount of fuel consumed during

the exercise. This is recorded, together with the odometer reading to compute for the fuel efficiency

during the exercise.12

They have already trained more than half of the 400 authorized drivers in Meralco SDS and are planning

to complete the training for all of them within the second quarter of this year.

Integration with Defensive Driving Seminar

To effectively roll-out the knowledge on eco-driving, not only in Meralco SDS but the whole of Meralco,

the eco-driving training has been integrated with the current defensive driving seminar that is given to

new drivers as a requirement for getting an authorization to drive. A refresher course on defensive

driving, which also includes a section on eco-driving, shall also be given to existing drivers who would

want to renew their authorization.

10

The vehicle used was a light-duty truck, Isuzu NKR. The distance of the course is 3.4 km. 11

Meralco SDS has its own fuel pump within its compound 12

The odometer reading should be consistent in each run since a predefined course has already been set.

0

2

4

6

8

10

12

0

0.1

0.2

0.3

0.4

0.5

0.6

Danilo Vasquez Jose Daylo Fernando Geronimo Edilberto Nayre Joel Trillanes

fue

l eff

icie

ncy

(k

m/l

)

fue

l co

nsu

mp

tio

n (

lite

rs)

1st Run Consumption (liters) 2nd Run Consumption (liters)

1st Run Fuel Efficiency (km / l) 2nd Run Fuel Efficiency (km / l)

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15 | P a g e

Monitoring

Meralco SDS also took measures to ensure that the monitoring of the fuel efficiency will give accurate

results. They released a memo reminding the vehicle users that they should properly fill up the

kilometers traveled section in the trip ticket and in the authority to withdraw fuel form. They are also

modifying their materials management system (where the fuel and odometer readings are encoded) to

include the fuel withdrawal dates. Currently, the system recognizes the encoding date but does not

include fields on fuel withdrawal dates. This creates difficulty in getting correct fuel efficiency figures

especially when there are delays in the process of encoding. The improvement eliminates the need to

check for errors created by the date of encoding.

Meralco SDS also released a memo on how vehicle users should go about withdrawing fuel. They asked

the vehicle users to fill the tank either during every withdrawal or every time they use the vehicle,

depending on the type of user. This ensures that the fuel consumption figures coincide with the figures

for kilometers driven. They have also recommended that the users should choose the time of the day

when it is not hot whenever they are withdrawing fuel. This also creates the opportunity for capturing

the fuel efficiency of every single driver in the fleet.

Meralco SDS has asked the security guards to check the completeness of the trip tickets whenever a

vehicle is going in and out of the compound. They would need to check the details such as the

odometer readings.

Rewards and Recognition

Meralco SDS commended qualified eco-drivers last February 2010. The bases for commendation were

attendance and participation in the eco-driving seminar conducted, actual improvement in fuel

efficiency13 and no record of preventable accidents in 2009.

They have also moved towards the inclusion of fuel efficiency improvement as an item in the

assessment of the performance of the drivers. This shall be implemented starting 2010.

Awareness Raising

Aside from the road shows and training seminars on eco-driving, the team also developed creative

materials on eco-driving and maintaining proper tire pressure and posted them in conspicuous places

within their compounds.

13

Based on the figures for the last quarter of 2009, compared to the figures for the last quarter of 2008. Since the

vehicle-driver assignments are not 1:1, the fuel efficiency of the vehicles were assessed. All the drivers who use the

vehicles that achieved improvement are qualified for commendation, given that they also meet the other criteria.

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Fig.7: Materials for Awareness Raising

Improved Maintenance of Vehicles

Proper maintenance is a basic necessity in moving towards a cleaner fleet but is most often overlooked.

The benefits of more advanced technologies and proper driving styles can be partly negated by a lack of

proper vehicle maintenance. It ensures that the efficiency of the vehicles is maximized and that

emissions are kept at optimal levels.

Standardization of Schedule

The schedule of vehicle maintenance was standardized in Meralco SDS. For those offices which have

24/7 operations, it is ensured that the maintenance activities are scheduled during the days-off of the

users to ensure that every vehicle gets maintained.

Table 9: Vehicle Maintenance Schedule Guide

Items Schedule

Engine Oil

Initial replacement 1,500 km

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Next replacement 5,000 km

Interval replacement Every 5,000 km or three (3) months, whichever comes first

Engine oil filter Every 5,000 km

Fuel Filter element

Main fuel filter Replace every 10,000 kms

Pre-fuel filter/water separator Drain every 1,000 kms or monthly

Air cleaner element Replace every 20,000 km or six (6) months

Valve clearance Inspect/adjust every 40,000 km

Feed pump strainer Inspect every 5,000km

Transmission oil Interval replacement every 40,000 km or six months

Steering fluid Interval replacement every 40,000 km or annually

Clutch fluid Interval replacement every 40,000 km or annually

Creation of a Standard Checklist

The interviews with the mechanics during the baseline data gathering, it was found out that the

mechanics had different views about what needed to be checked during a preventive maintenance

check-up. To address this, the team created a checklist of items to be checked during the check-up.

Fig.8: Vehicle Maintenance Checklist

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Re-fleeting: Right Sizing and Specs Modification

Meralco SDS has utilized the recommendations of the Toolkit in choosing the proper vehicles that

replaced some of its older vehicles. Some of the light trucks were replaced by smaller emergency pick-

up trucks as the team found that the engines of these vehicles are too big compared to the actual

requirement for their use. They also replaced some of the older gasoline-fed vans and passenger cars

with new diesel-fed ones. Even though diesel contains more carbon per volume (2.5kg/liter) compared

to gasoline (2.35kg/liter), diesel vehicles consume less fuel (approximately 25%) and therefore emit less

carbon dioxide.

Fig.9: Vehicle Right Sizing and Shift to Diesel-fed Vehicles

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IV. Initial Results

The implementation of the various measures resulted in a 16.5% improvement in the fuel efficiency of

Meralco SDS’s vehicles. The figure reflects the improvement gained during the last quarter of 2009

(versus the last quarter of 2008).14 The total distance traveled increased by 30% while the fuel

consumption only increased by 12%.

Fig.10: Total Distance travelled by the Different Types of Vehicles

Fig.11: Fuel Consumption in Liters

14

This period is initially chosen for comparison since Meralco SDS initiated the measures during this time.

814,812.00

1,061,469.50

226,151.00 289,404.00

127,507.00 179,111.00

459,220.00

596,655.50

-

200,000

400,000

600,000

800,000

1,000,000

1,200,000

2008 2009 2008 2009 2008 2009 2008 2009

Total Emergency Pick-up Heavy Vehicles Service Vehicles

kil

om

ete

rs 30%

increase

28%

increase40%

increase

30%

increase

170,666.34

190,885.17

41,997.71 43,703.73

59,238.20 68,603.32 68,488.43

79,419.12

-

50,000

100,000

150,000

200,000

2008 2009 2008 2009 2008 2009 2008 2009

Total Emergency Pick-up Heavy Vehicles Service Vehicles

lite

rs

12%

increase

4%

increase

16%

increase

16%

increase

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Fig.13: Fuel Efficiency

An analysis of the annual figures reveals that the fleet gained a 10.7% improvement in fuel efficiency as

well. The table below summarizes the annual change in the vehicle activity and the emissions generated

by the fleet from 2008-2009.15

Table 10: Results of the Green Fleet Program (2008 vs 2009)

% Change

Numbers 6%

Fuel consumption -9.7%

Fuel efficiency 10.7%

CO -4%

VOC -6%

NOx -2%

SOx -6%

PM10 -4%

CO2 -10%

The chart below depicts the decline in the criteria air pollutants and CO2 emissions from the Meralco

SDS fleet from 2008 to 2009.

15

The total distance driven by the fleet increased by 13% in 2009 as compared to 2008. In order to reflect the fuel

efficiency impacts on the criteria air pollutants, the distance driven in 2008 was used in the calculations while

applying the fuel consumption figures of 2009. This was done since the criteria air pollutant emission factors in the

toolkit are in g/km and do not reflect the impacts of fuel efficiency improvements.

4.77

5.56 5.38

6.62

2.15 2.61

6.71

7.51

-

2.50

5.00

7.50

10.00

2008 2009 2008 2009 2008 2009 2008 2009

Total Emergency Pick-up Heavy Vehicles Service Vehicles

fue

l e

ffic

ien

cy (

km

/lit

er)

16%

increase

23%

increase

21%

increase

12%

increase

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Fig.14: 2008 vs 2009 Fleet Emissions

V. Success Factors and Challenges16

For the initial quarter of implementation, the project achieved its objective. Management support was

instrumental in the rapid adoption of the changes that needed to be made to realize the benefits of the

measures chosen. The early issuance of a commitment letter17 by the management indicated the

direction and pace that Meralco SDS wanted for this project.

The cooperation of the different business responsibility units has been a significant element in the initial

success of the project. Several memos were released in order to formalize the changes that were

proposed by the team. The assistance given by the external partners was helpful as well.The motivations

(i.e., EHS Policy) for implementing such a project provided the much needed enthusiasm from the whole

of Meralco SDS. The project is a pioneer project which not only contributes to awareness raising and

emissions reduction, but has generated substantial savings as well.

The most substantial challenge in the initial implementation of the project was the workload of the team

members. The tasks for the project were add-ons to their existing tasks and sometimes, there would be

minor conflicts in schedule.

VI. Moving Forward

Given the initial success of the project, Meralco SDS will continue on with its implementation. Meralco

as a whole,18 is currently moving towards the adoption of the different measures that are being

16

As identified by team leader Andy del Rosario during an interview. 17

A commitment letter dated ~ was submitted by Meralco SDS which stated that Meralco SDS is willing to provide

relevant information necessary for utilizing the toolkit and work closely with UNEP-PCFV, CAI-Asia and PBE in

measuring and monitoring its emissions, in setting the appropriate emission reduction and/or fuel savings

objective and in implementing practical strategies to achieve such objectives. 18

Including the North and Central sectors

8.18

2.66

7.30

1.011.40

1.71

7.88

2.50

7.19

0.961.35 1.54

0

1

2

3

4

5

6

7

8

9

CO VOC NOx SOx PM10 CO2

tons thousand tons

2008 2009

Page 22: Meralco Case Study Report

implemented in Meralco SDS. It is currently

the driving seminar that is given to the new drivers. Also, it has adopted the recommendation of the

project team to mandate a refresher course

those drivers who would want to renew their authorization to drive the company vehicles.

SDS project team shall also be delivering a train

2010.

Fig.15: Future Targets

19

Every 3 years

implemented in Meralco SDS. It is currently moving towards the inclusion of eco-driving as a module in

the driving seminar that is given to the new drivers. Also, it has adopted the recommendation of the

project team to mandate a refresher course19 on defensive driving, with the inclusion of eco

those drivers who would want to renew their authorization to drive the company vehicles.

SDS project team shall also be delivering a train-the-trainers program for the North and Central areas

: Future Targets of Meralco’s Green Fleet Program

22 | P a g e

driving as a module in

the driving seminar that is given to the new drivers. Also, it has adopted the recommendation of the

on defensive driving, with the inclusion of eco-driving, for

those drivers who would want to renew their authorization to drive the company vehicles. The Meralco

trainers program for the North and Central areas in