meralco case study report
TRANSCRIPT
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
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Development
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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?
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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.
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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:
��������� ��� ��� � �70%���� ��� � ����� �������
4.95��
����� � 70% � �4.95
��
����� 5.3
��
�����
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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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
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
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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