{"id":60451,"date":"2024-07-22T00:22:00","date_gmt":"2024-07-22T00:22:00","guid":{"rendered":"https:\/\/sms-bridges.com\/staging\/?p=60451"},"modified":"2025-06-16T06:07:23","modified_gmt":"2025-06-16T06:07:23","slug":"the-next-100-years-aboitizs-journey-toward-becoming-a-sustainable-techglomerate","status":"publish","type":"post","link":"https:\/\/sms-bridges.com\/staging\/the-next-100-years-aboitizs-journey-toward-becoming-a-sustainable-techglomerate\/","title":{"rendered":"The next 100 years: Aboitiz\u2019s journey toward becoming a sustainable \u2018techglomerate\u2019"},"content":{"rendered":"\n

The Aboitiz Group, a venerable name in Philippine business, is undergoing a remarkable transformation. Now poised to\u00a0become the Philippines\u2019 first \u201ctechglomerate,\u201d\u00a0it leverages technology, innovation\u00a0and a startup culture to redefine its operations\u00a0and impact.\u00a0<\/p>\n\n\n\n

Sabin Aboitiz, lead convenor of the Private\u00a0Sector Advisory Council and president and CEO of the Aboitiz Group, shares his insights on the conglomerate\u2019s transformation\u00a0over the past decade. From its roots\u00a0as a hemp-trading business, the Aboitiz\u00a0Group has evolved into a diversified entity, forging significant partnerships with\u00a0Japanese firms along the way.\u00a0<\/p>\n\n\n\n

Bridges<\/strong>: Can you provide an overview\u00a0of the group\u2019s journey, highlighting key milestones and factors driving its evolution into a diversified conglomerate?\u00a0<\/h3>\n\n\n\n
\"\"
Sabin Aboitiz<\/strong>, President and Chief Executive Officer of Aboitiz Group, Lead Convenor of the Private Sector Advisory Council<\/figcaption><\/figure><\/a><\/div>\n\n\n\n

Aboitiz<\/strong>: From its origin in the late 1800s,\u00a0the group has evolved into a diversified\u00a0conglomerate spanning power, banking, food, infrastructure and more. Despite facing\u00a0challenges like near bankruptcy during economic downturns, our focus has been\u00a0on shedding legacy thinking and embracing\u00a0agility and innovation.\u00a0<\/p>\n\n\n\n

The launch of the \u201cgreat transformation\u201d\u00a0in 2021 marked a pivotal shift toward\u00a0a techglomerate model, prioritizing diversification\u00a0to reduce reliance on any single industry. For instance, the sale to Jera Co.\u00a0was instrumental in diversifying funds and bringing strategic value. As we transition from a conglomerate holding company to a federalized structure, our aim is to have less than 50% reliance on power and expand\u00a0into the consumer space, evidenced by investments in airports and consumer\u00a0products like Coca-Cola. This shift is crucial\u00a0for maintaining agility and innovation in today\u2019s dynamic business landscape, ensuring continued relevance and growth.\u00a0<\/p>\n\n\n\n

The launch of the \u201cgreat transformation\u201d in 2021 marked a pivotal shift toward a techglomerate model, prioritizing diversification to reduce reliance on any single industry.<\/p>Sabin Aboitiz<\/strong>, President and Chief Executive Officer of Aboitiz Group, Lead Convenor of the Private Sector Advisory Council<\/mark><\/cite><\/blockquote><\/figure>\n\n\n

\n
\"\"<\/a><\/figure><\/div>\n\n\n

Can you tell us about the company\u2019s\u00a0links and collaborations with Japan?\u00a0<\/h3>\n\n\n\n

Our relationship with Japan goes back a long way. Initially, we were involved in the shipping business, purchasing ships\u00a0from Japan annually \u2014 this tradition\u00a0spanned from my grandfather to my father\u00a0and my brother. Many of the ships in the\u00a0Philippines, especially the RORO (roll-on\/roll-off) type and passenger ferries, came\u00a0from Japan. This relationship strengthened\u00a0every year. Later, when we ventured\u00a0into Aboitiz Air Transport, we bought YS-11\u00a0aircraft from Japan and pioneered air cargo in the Philippines. Our transport company expanded strategically to cover air, land\u00a0and sea, and our fleet was predominantly\u00a0Japanese-made.\u00a0<\/p>\n\n\n\n

In Cagayan de Oro, we partnered with\u00a0Kao Corp. to manufacture chemical products and shampoos for export, marking\u00a0another successful collaboration.\u00a0<\/p>\n\n\n\n

We also formed a significant partnership in shipbuilding with Tsuneishi\u00a0Shipbuilding Co., one of the largest shipbuilders in the world, based in the West Cebu Ecozone. Japan has been a crucial part of our growth, and our collaborations\u00a0with them remain strong. We continue to\u00a0have discussions and welcome ongoing\u00a0cooperation with Japanese firms.\u00a0<\/p>\n\n\n\n

Could you elaborate on the Aboitiz\u00a0Group\u2019s leadership in the Philippines-Japan consortium for renewable energy innovation?\u00a0<\/h3>\n\n\n\n

Energy, whether renewable or not, is a\u00a0crucial aspect of the Philippines\u2019 development.\u00a0At Aboitiz, we approach it pragmatically,\u00a0focusing on what makes sense for\u00a0our country. When Jera inquired about our commitment to achieving net zero by 2050, we refrained from adhering to preset industry norms. We don\u2019t believe in making promises that far into the future, as\u00a0circumstances can change drastically.\u00a0<\/p>\n\n\n\n

Energy, whether renewable or not, is a crucial aspect of the Philippines\u2019 development. At Aboitiz, we approach it pragmatically, focusing on what makes sense for our country.<\/p><\/blockquote><\/figure>\n\n\n\n

Instead, we advocate for a balanced\u00a0energy portfolio, incorporating various\u00a0sources such as coal, gas, wind, solar and geothermal. This approach ensures reliability\u00a0and stability in our energy supply,\u00a0crucial for sustained economic growth.\u00a0While renewable energy holds immense\u00a0potential in the Philippines, particularly with abundant sources like geothermal\u00a0and hydro, it cannot entirely replace traditional\u00a0sources. Our energy landscape requires a diverse mix to meet demand consistently, especially during times when renewable sources may be less reliable,\u00a0such as cloudy days or during typhoon season.\u00a0<\/p>\n\n\n\n

Can you share insights into your role as the lead convenor of the Private Sector Advisory Council?\u00a0<\/h3>\n\n\n\n

Our most significant gain lies in fostering a favorable environment where everyone benefits when the country prospers.\u00a0Therefore, I dedicate much of my time to\u00a0this project. In April 2022, the president entrusted me with the task of formulating a plan that bridges the private sector\u00a0and government \u2014 a belief he genuinely\u00a0holds. He outlined six key industries during his campaign: tourism, agriculture, digital infrastructure, hard infrastructure, health care and job creation. In response,\u00a0I proposed organizing six working groups, each comprising top CEOs from various sectors, regardless of political affiliation.\u00a0<\/p>\n\n\n\n

These groups convene regularly to provide on-the-ground insights and advice. Importantly, we value the CEOs\u2019 time,\u00a0scheduling meetings well in advance. Each\u00a0sector meets every quarter, with one group meeting every two weeks. The president\u2019s\u00a0engagement has been exemplary; he devotes\u00a0two focused hours biweekly, offering\u00a0directives and encouragement.\u00a0<\/p>\n\n\n\n

\"\"
Members of the Philippine government, including (seated from left) Sen. Mark Villar<\/strong>; House Speaker Martin Romualdez<\/strong>; former President Gloria Macapagal-Arroyo<\/strong>; President Ferdinand R. Marcos Jr.<\/strong>; Department of Trade and Industry Secretary Alfredo Pascual<\/strong>; and Special Assistant to the President Antonio Lagdameo Jr.<\/strong>, are working closely with members of the private sector such as Aboitiz Power Chairman Sabin Aboitiz<\/strong> (standing left) and Jera President Satoshi Onoda<\/strong> on a joint study on ammonia co-firing for greener fuels. | All photos: Aboitiz Group<\/strong><\/figcaption><\/figure><\/a><\/div>\n\n\n\n

What are the key technologies and innovations driving the Aboitiz Group\u2019s vision to become the Philippines\u2019 first techglomerate?\u00a0<\/h3>\n\n\n\n

Our strategy centers on integrating technology into all facets of our existing\u00a0and emerging businesses. This means optimizing operations, enhancing customer experiences and exploring new\u00a0ventures. For example, in our power plants, we\u2019re using sensors and automation to boost efficiency and cut costs. At Mactan Airport, we\u2019re employing data analytics to personalize services, and our digital bank offers streamlined processes like quick loan approvals. These efforts highlight our commitment to using data strategically to\u00a0drive innovation and improve customer experiences. We\u2019ve also learned from past digital transformation efforts, focusing on fostering a culture open to innovation\u00a0across our business units. Our goal is to\u00a0create a more efficient work environment where technology enables progress rather than impedes it.\u00a0<\/p>\n\n\n\n

As the group expands into sectors like\u00a0consumer markets and infrastructure,\u00a0what are the key priorities or strategies\u00a0guiding these diversification efforts?\u00a0<\/h3>\n\n\n\n

The consumer sector\u2019s remarkable growth underscores our economy\u2019s robustness, with assets like Citibank Philippines\u00a0and Coca-Cola performing exceptionally well.\u00a0<\/p>\n\n\n\n

Despite temporary operational challenges in the airport sector, we anticipate\u00a0significant growth with impending resolutions.\u00a0Our focus on renewable energy\u00a0expansion, highlighted by plans to add 3,000 megawatts, aligns with our commitment to sustainable growth. Collaborations in the gas sector with Meralco and San Miguel Corp. further demonstrate our\u00a0dedication to this goal.\u00a0<\/p>\n\n\n\n

Our focus on renewable energy expansion, highlighted by plans to add 3,000 megawatts, aligns with our commitment to sustainable growth.<\/p><\/blockquote><\/figure>\n\n\n\n

Amid these ventures, our current-year\u00a0emphasis is on integration and optimization for maximal returns. Looking forward, our strategic priorities remain centered on people, nurturing talent, fostering growth and ensuring our workforce is empowered to drive our company\u2019s success, echoing\u00a0our pandemic-era commitment to employee\u00a0well-being.\u00a0<\/p>\n\n\n\n

What are the key priorities for the\u00a0Aboitiz Group moving forward, and\u00a0how do they align with the company\u2019s\u00a0strategic vision and growth objectives?\u00a0<\/h3>\n\n\n\n

Our core principle revolves around\u00a0people. Ensuring our employees\u2019 wellbeing\u00a0remains paramount, not just during challenging times like the pandemic\u00a0but as an ongoing commitment. We\u2019re dedicated to fostering their growth and transformation, challenging them to excel and contribute meaningfully. This people-centric approach will remain my primary focus until 2027, leaving behind a legacy of an empowered workforce. Additionally, we prioritize supporting governmental efforts for societal progress,\u00a0advocating for active participation in positive initiatives.<\/p>\n\n\n\n

aboitiz.com<\/strong><\/a><\/p>\n\n\n\n

<\/div>\n","protected":false},"excerpt":{"rendered":"

The Aboitiz Group, a venerable name in Philippine business, is undergoing a remarkable transformation. Now poised to\u00a0become the Philippines\u2019 first \u201ctechglomerate,\u201d\u00a0it leverages technology, innovation\u00a0and a startup culture to redefine its operations\u00a0and impact.\u00a0 Sabin Aboitiz, lead convenor of the Private\u00a0Sector Advisory Council and president and CEO of the Aboitiz Group, shares his insights on the conglomerate\u2019s […]<\/p>\n","protected":false},"author":7,"featured_media":60761,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"advgb_blocks_editor_width":"","advgb_blocks_columns_visual_guide":"","footnotes":""},"categories":[805,923,292,259,926,135,766,922,924,264],"tags":[506],"class_list":{"0":"post-60451","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-2024-year","8":"category-2025-magazine","9":"category-articles","10":"category-bridging-japan","11":"category-business-ph","12":"category-diversified","13":"category-diversified-the-philippines","14":"category-magazine","15":"category-philippines-2025-magazine","16":"category-the-philippines","17":"tag-industrial"},"yoast_head":"\nThe next 100 years: Aboitiz\u2019s journey toward becoming a sustainable \u2018techglomerate\u2019 - Bridges Magazine<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/sms-bridges.com\/staging\/the-next-100-years-aboitizs-journey-toward-becoming-a-sustainable-techglomerate\/\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"The next 100 years: Aboitiz\u2019s journey toward becoming a sustainable \u2018techglomerate\u2019 - Bridges Magazine\" \/>\n<meta property=\"og:description\" content=\"The Aboitiz Group, a venerable name in Philippine business, is undergoing a remarkable transformation. 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