Contact Magazine: The Sustainability Issue by Eureka Communications Limited

Contents

16 Global influences & Compliance 18 A Case Study of The Cotton Tree Foundation 20 Building brand equity through cultural stakeholders A quarterly publication of The Trinidad and Tobago Chamber of Industry and Commerce Cover illustration Vol. 15. No.3 2015 courtesy Abovegroup

people planet profit

Why Corporate Social Responsibility

Organisations and There is no thought leaders demonstrable return on developed the idea of the that expense so why triple bottom line and are organisations really implemented a frame bothering with it? This work based on social, mind set is completely environmental (or obsolete and inspired leaders now think of the ecological) and financial impact. Nowadays they impact their organisations have on People, Planet refer to the three Ps of People, Planet and Profit, and Profit, driven by a powerful purpose! which form the "three pillars of sustainability".

Defining Corporate Social Responsibility Certainly, the definition of ‘responsibility’ as it relates to CSR varies, but broadly speaking, it is accepting and owning the outcomes of your actions in society. The focus needs to be on being accountable to society for all the actions of the business in fulfilling its purpose.

The path to being CSR-centric The aim of the CSR structure is to embed Social, Economic and Environmental responsibility into each aspect of the business. In this way, the company can make contributions so that it can profit from excellence, grow in a sustainable manner and fulfil its societal role.

22 Social impact beyond the workplace - A perspective from Giselle Laronde-West 24 The Power to Make a Difference through Corporate Social Responsibility 26 What every business person should know 28 Economic and Financial Statistics 30 Economic Outlook 31 Half Year 2015 review 34 The New Energy Economy

Editor: Halima Khan Editorial Board: Communications Committee: Robert Trestrail, Catherine Kumar, Hugh Ferreira, Anthony Agostini, Andrew Johnson, Dalia King, Michele Celestine Design & Layout JG Design Caribbean Published by Eureka Communications Limited Suite #2 No.9 Avenue First, St. James, Trinidad W.I. Tel: (868) 622-2017 • (868) 628-1555 Fax: • (868) 622-4475 E-mail: • contacteureka@yahoo.com • lanny5052@gmail.com • jgdesigns.jason@gmail.com For The Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637-6966 Fax: (868) 637-7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt For this magazine contact: Tel: (868) 637-6966 Tobago Division:Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor ANSA McAL Building, Milford Road, Scarborough, Tobago Tel: (868) 639-2669 Fax: (868) 639-2669 E-mail: tobagochamber@chamber.org.tt

36 Energy Statistics 47 Welcome to New Members 48 Advertisers

Information on Trinidad & Tobago

10º 2’ and 11º12’ N latitude and 60º 30’ and 61º 56’ W longitude or 11 Kilometers (6.8 miles) of the eastern coast of Venezuela. Tobago is located 32.2 Kilometers (20 miles) to the north-east of Trinidad. There are two international sea ports in Trinidad, Portof-Spain and in Point Lisas. The International airports are located in Piarco, Trinidad and Crown Point, Tobago. Trinidad’s economy is primarily dependent on the petrochemical sector, while the island of Tobago is mainly dependent on tourism.

rinidad and Tobago (T&T) has a population of approximately 1.3 million people who inhabit 4,827 square kilometers (1,886 miles) in Trinidad and 300 square kilometers (117 miles) in Tobago. Trinidad is located between

The twin island republic boasts a multi-ethnic people, diverse culture and unique cuisine. As a result of its cosmopolitan population, the country celebrates a significant number of festivals around the year including carnival, Phagwa or Holi, Divali and Eid-Ul-Fitr. Tobago the smaller island, has a population of just over 54,000 and has an interesting history in that, during the colonial period, French, Dutch and British Forces fought for the possession of Tobago and the Island changed hands more than 22 times – more than any other Caribbean Island.

Contact • Vol.15 No.3 2015

Trinidad and Tobago Chamber of Industry and Commerce

VISION STATEMENT We are the Voice of Business. MISSION STATEMENT To be the champion of business towards the development of a strong and sustainable national economy. BOARD OF DIRECTORS Robert Trestrail – President Ronald Hinds – Vice President Rakesh Goswami – Vice President Wade George – Director Luana Boyack – Director Paula Rajkumarsingh – Director Jacqueline Francois – Director Jean-Pierre Du Coudray – Director Reyaz Ahamad – Director David Hadeed – Director Moonilal Lalchan, Immediate Past President Diane Hadad – Chairman, Tobago Division Catherine Kumar – Corporate Secretary & Chief Executive Officer COMMITTEES - TRINIDAD • Communications • Corporate Social Responsibility

• Crime & Justice • NOVA • E-Business, Information • Trade & Business Technology & Development Telecommunications (EBITT) • Health, Safety & • Employment & Labour Relations Environment COMMITTEES - TOBAGO • Business Development & Tourism • Inter-island Transport

• Security • Environment

HOW TO CONTACT US Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle, Westmoorings, P.O. Box 499, Port of Spain, Trinidad & Tobago W.I. Tel: (868) 637 6966 Fax: (868) 637 7425 E-mail: chamber@chamber.org.tt • Website: www.chamber.org.tt Tobago Division of the Trinidad and Tobago Chamber of Industry and Commerce 2nd Floor, Ansa McAL Bldg., Milford Rd., Scarborough, Tobago Tel: (868) 639 2669 Fax: (868) 639 3014 E-mail: tobagochamber@chamber.org.tt

• Facilities Management & Maintenance Contact • Vol.15 No.3 2015

An Editorial Note from the President

Why Corporate Social Responsibility? By Robert Trestrail

Robert Trestrail, President, Trinidad and Tobago Chamber of Industry and Commerce

orporate Social Responsibility (CSR) is a cost! It is not an investment… it is a cost to businesses that want to prove that they ‘do the right thing’. There is no demonstrable return on that expense so why are organisations really bothering with it? This mind set is completely obsolete and inspired leaders now think of the impact their organisations have on People, Planet and Profit, driven by a powerful purpose! In this edition of CONTACT we look at real-life examples of some impactful initiatives from T&T corporations as they seek to be more responsible and engage more meaningfully with their communities. By doing this they hope to make a positive impact and build intangible brand equity that on the one hand, will increase goodwill and build their corporate reputation, and on the other, build important stakeholder relationships.

This edition’s purpose is to stimulate a deeper level of thinking about the role organisations can and do play within their communities, and to give relevant insights to either get started or continue on a path to real sustainability. Giselle Laronde-West is interviewed by Donna Ramsammy of the T&T Corporate Social Responsibility (TTCSR) Review on some of what Angostura has been doing and gives the example of how employees and their families have really taken recycling on board both in the

workplace and at home. The Massy All Stars case study shows how an organisation can do much more than sponsorship and extend parts of the organisation and its resources to help build life skills. Republic Bank also provides an example of how a company can make a difference by taking a longer term, partnership view of the initiatives they invest in, through its support for the “Parenting for Literacy” Programme.

programmes in place locally, we still have some way to go to move towards a genuine sustainability agenda. An area that needs strengthening as we evolve is terms or measurement and reporting. The Global Reporting Initiative is a widely accepted model for this. Globally, the thinking on sustainability is that organisations need to be considering how they impact People, Planet and Profit and that those that do so well are driven by a clearly defined and powerful purpose that considers all Given the contribution of the energy sector to three as connected. the T&T economy, sustainability is particularly important and has unique significance. The In their book ‘Conscious Capitalism’ John article on global influences explores this. We Mackey and Raj Sisodia refer to the broader also tap into local and global thought leadership, positive impact that businesses can have when exploring the role of CSR and transparency in they have this higher purpose that goes further the wider context of sustainability via a case than generating profits and shareholder value. study of Unilever. Insights from The Cotton They speak of conscious capitalism as ‘an Tree Foundation on their governance structure evolving paradigm for business that and how it has evolved demonstrates that simultaneously creates multiple kinds of value organisations of any size can embed these and well-being for all stakeholders’. Enlightened principles internally. organisations globally are embracing this and seeking to exist in what Mackey and Sisodia It is worthwhile to provide some clarity around describe as ‘far greater harmony with the ethos the terminology being used. Professor David of our times and the essence of our evolving Grayson from Cranfield University, School of beings’. I urge all of our members to consider Management sees corporate sustainability as how they too can become sustainable the ‘what’ and corporate social responsibility organisations and sincerely hope that this edition as the ‘how’. While we do have some great triggers real, lasting change in the landscape of examples of organisations with excellent CSR our beloved T&T.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Criteria for student selection - Each student must: • Be unable financially to pursue further education upon graduation, • Demonstrate potential and a willingness to learn, • Attend all scheduled training sessions, and • Complete a data entry form outlining goals, skills & identifing areas requiring development. The Chamber’s NOVA Committee’s Jumpstart Programme was established in 1998 and seeks to assist school-leavers to learn about the working environment and to access opportunities for employment. Selected schools and institutions across the country are invited to nominate graduating students to participate in this highly regarded ‘youth development programme’.

Participating company requirements - Each company must: • Pay a weekly recommended stipend, • Assign a mentor to the apprentice and • Complete an assessment review at the end of the apprenticeship.

Further information is available on the Jumpstart Programme from the Chamber’s Secretariat or Cheryl-Lyn Kurban, Project Assistant at 637-6966 ext 228 or ckurban@chamber.org.tt

people planet profit

By Jeremy Joseph

lobally, enlightened organisations have recognised that they are part of a complex, interconnected ecosystem where actions in one area can impact other parts of that ecosystem. And it is not necessarily direct, or even nearby. Over the years the thinking has evolved from being purely about profit, to include a corporate social responsibility and now a concern for the environment as well. Organisations and thought leaders developed the idea of the triple bottom line and implemented a framework based on social, environmental (or ecological) and financial impact. Nowadays they refer to the three Ps of People, Planet and Profit, which form the "three pillars of sustainability". Professor David Grayson from Cranfield University’s School of Management - a leading authority in this area – defines corporate sustainability in an interview with Samsung Electronics as follows: Corporate Sustainability is a business commitment to sustainable development. An approach that creates longterm shareholder and societal value by embracing the opportunities and managing the risks associated with social, environmental and economic developments. As such, I see it as a higher stage of corporate responsibility maturity… The goal! To be able to continue into the indefinite future in a resource-constrained world. These inspired organisations embed sustainability in their businesses and think deeply about what that means for every aspect of it – internally and externally - and set goals for themselves. Unilever is an organisation that has taken this on board in a very meaningful way and considers the areas that they have impact. They have a Sustainable Living Plan in place that informs even the products that they produce. Unilever has stated three specific sustainability goals: • Improving Health and Well-being: “By 2020 we will help more than a billion people take action to improve their health and well-being.” • Reducing Environmental Impact: “By 2020 our goal is to halve the environmental footprint of the making and use of our products as we grow our business.” • Enhancing Livelihoods: ”By 2020 we will enhance the livelihoods of millions of people as we grow our business.” ‘Our purpose is to make sustainable living commonplace. We are developing new business practices that grow both our

company and communities, meeting people's desire for more sustainable products and creating a brighter future. The Unilever Sustainable Living Plan will help us double the size of our business while reducing our environmental footprint and increasing our positive social impact.’ Keith Weed, Unilever’s Chief Marketing Officer, UK (27th April 2015) in an interview with Marketing Magazine shared why sustainability is the only reliable business model. “‘We know that consumers increasingly want brands with purpose – and that purpose delivers growth. We also know that sustainability is particularly important for the millennial generation. For our brands, we are seeing particular growth in sales for those that have built purpose and sustainability into their brand mixes. Some great examples include our brand Kissan. We moved [over] to sustainably sourced tomatoes and helped propel Kissan to become the number-one ketchup in this category in India; Lifebuoy (with its handwashing agenda); Dove (with its important work on self-esteem) and Domestos (with its sanitation programme, building toilets in developing markets) – they have all grown consistently over the past four years.” This level of thinking extends beyond good short term projects but really challenge the organisation to change from the core and make a lasting impact. What they have also done is adopt reporting standards that make them more accountable across the dimensions of social, environmental as well as financial performance. Many organisations globally, including Unilever, use the Global Reporting Index (GRI) as the framework for sustainability reporting. GRI define this as “A sustainability report is a report published by a company or organization about the economic, environmental and social impacts caused by its everyday activities. A sustainability report also presents the organization's values and governance model, and demonstrates the link between its strategy and its commitment to a sustainable global economy.” Looking at sustainability from a global perspective, it is clear that organisations are increasingly putting it at the centre of their strategic thinking, understanding where and how they can have real and meaningful impact and implementing sustainability from the inside out. They are also ensuring that reporting mechanisms are in place so that tangible outcomes and progress can be seen by all stakeholders

Candice Ali interviews Melanie Richards of CSR Solutions

Corporate Social Responsibility (CSR) doesn’t seem to be well defined for a lot of people and for a lot of companies. What does CSR mean for local companies and what does it mean for the local landscape? I appreciate that there are different schools of thought as to what CSR is; my own view is that CSR is fundamentally about companies operating as responsible organisations, and that relates to the operation of the organisation in all areas, as distinct from doing ad hoc ‘responsible acts’, and this is where I think we started to go wrong. Certainly, the definition of ‘responsibility’ as it relates to CSR varies, but broadly speaking, it is accepting and owning the outcomes of your actions in society. The focus needs to be on being accountable to society for all the actions of the business in fulfilling its purpose. Companies need to first start from a position of thinking about their purpose, vision, and mission. This is a conversation which includes, but goes far beyond revenues and profits. Several companies have been successful without any sort of real CSR effort. Why spend on this when businesses can succeed by spending less CSR, particularly since it really doesn’t contribute directly to the bottom line? I think it depends on how you measure success. If you are measuring success solely in financial terms, without considering impacts on society and environment, then perhaps there are organisations that are “successful” without any real CSR effort. In my view, really successful organisations - those that will be sustainable - must not only consider profits today, but need to think more about the long term... and social and environmental considerations must be part of that thinking. There are many international organisations that are doing exactly this, examining their product lines, supply sources, determining what impacts their inputs will have on the environment and societies in the future, re-evaluating the ingredients that are used in their

products, asking the questions like where will we source water for production in the next 20 years? This is because they are beginning to understand the bigger picture of how business fits into society and the environment. I think we are just not there yet... in my view, we are far off from running truly sustainable businesses. What’s the difference between CSR and Philanthropy? Philanthropy is giving, and in many cases, organisations need to do just that...give. This is part of being a responsible organisation, recognising a need and acting on it, and this often brings goodwill to the organisation. I fully support philanthropy. However, this alone does not make an organisation responsible or sustainable. Organisations really need to look at their overall relationship with, and impact on, society and the environment and it is with this broader approach and long-term vision that we will start to see the benefits of CSR. How would a company with limited resources even start to embark on a CSR programme? I think that we should not even be talking about embarking on “CSR programmes”; this reinforces the short-term ad-hoc thinking that is now attached to CSR. Organisations need to be looking at their strategy, assessing their situation in the workplace, the marketplace, the society and the environment. It is about changing the way we do business and determining how we will do business in the future. It is really about changing cultures and changing mind-sets, it’s about looking at every action and decision that the business makes and evaluating these not solely on dollars and cents but also from a social, environmental and ethical perspective with a long term view. This is what makes it so difficult to “get it right”. Unfortunately, I think that the term CSR has become a “bad word” and I say this as Director of CSR Solutions Limited. Perhaps we need now to be talking about sustainable business

The Trinidad and Tobago Chamber of Industry of Commerce’s Corporate Social Responsibility (CSR) Committee has a significant role to play in advocating CSR in Trinidad and Tobago. Through the influence of the Chamber, the committee is poised to be the voice that will guide the Chamber’s membership and by extension, Trinidad and Tobago. A key objective for the next year will be to engage with the membership in identifying risks, particularly in the form of external expectations and pressures, and to transform these risks into opportunities and competitive advantage. By embedding structured CSR into their organizations, members have the opportunity to be influencers in society. The aim of the CSR structure is to embed Social, Economic and Environmental responsibility into each aspect of the business. In this way, the company can make contributions so that it can profit from excellence, grow in a sustainable manner and fulfil its societal role. It’s through the energy of our people we achieve goals, and the Committee intends to instil that energy amongst its own membership. The CSR Committee can be seen therefore as “taking root” into our own CSR initiative. We are creating value on an enduring basis by working together with our customers such as small to medium enterprises (SME) towards shared objectives. The Committee aims to be seen as the influencer and our membership as the early adopters. Experience has shown us that there is hesitation by a number of companies such as SMEs to engage in a structured CSR programme or initiative. The perception is that CSR programmes are expensive and for the big companies. Brand it as you may, the principles of CR, CSR, Sustainability and Sustainable Development are all the same. The Brundtland Commission in its 1987 report “Our Common Future” coined what has become the most often quoted definition of Sustainable Development, “development that meets the needs of the present without compromising the ability of future generations to meet their own needs”. So before a company begins to chart and implement an approach for addressing social responsibility, they should collect and evaluate their own shop. They need to identify and analyse the issues of social responsibility material to it and its stakeholders and evaluate the context of those issues. It is our Committee’s objective therefore to advocate the notion of CSR at the most basic level so that everyone starts on a level playing field, demonstrating that the concepts are the same for everyone

Global influences & Compliance Anil Seunath

he world as it exists today is an ever changing one. No one knows what the remainder of the year holds for the world economy. Analysts are busy trying to explain recent trends, and forecasting is now far more challenging.

CSR is the thing companies do in their efforts to address those expectations of doing good things that have greatly expected from Oil and Gas companies.

Because of fluctuating energy prices, we are seeing degrees of instability in stock markets all over the globe, and this is causing many companies, and indeed many countries to seriously consider how they will navigate the economic challenges of the future.

Milton Friedman notes that â&#x20AC;&#x153;one and only one social responsibility of business is to increase profits so long as it stays within the rules of the gameâ&#x20AC;?. Whilst this may seem to infer that companies look after shareholder needs rather than stakeholder needs, we can argue that the relationship and reliance on stakeholders are far more essential to an operation than a boardroom. So as the energy industry faces uncertainty, what remains as necessity, are the relationships that must be maintained among groups that have a stake in the activities that make up the business. Business is about customers, suppliers, employees, financiers and communities that all interact and create value.

For the global energy industry, economic uncertainty has certainly become the new normal. As the industry continued to evolve over the last decade, strong global demand for oil and gas has been a key characteristic over the last few years.

It is therefore safe to say that as long as companies continue to invest for the benefit of themselves and society, in a win-win advancement of shareholder interests, we will benefit in the long run - and the short run.

On the premise of this, companies will continue with the optimism of prosperity and good fortune. Without the industry, there will be a ripple on effect for economies.

Nothing in society happens in a vacuum and certainly nothing goes unnoticed anymore. Therefore ethical norms are as important as regulatory. More and more business is done out in the open and wrong doings will not only be reported by media outlets, but are most likely to end up on social media.

No one in the business world could have predicted a world where a barrel of oil could cost over $100, and then a few months later drop to $50 a barrel. Some industry analysts are saying that we will continue to see volatility in the energy markets for the foreseeable future.

Looking at the local sector through sustainability lenses, we will examine how it fits in the current climate. But first, we need to appreciate the importance of sustainability in the larger scheme of things. In the Oil and Gas sector, sustainability may be of more importance than in any other sector. The sector is an extremely lucrative business but it imposes a significant cost to society - air pollution, oil spills, injury and even death. So, apart from licensing and regulations, societies look for companies to self-regulate and to do more to guard against risks, perhaps more so than any other industry. What this means is that society looks to the energy sector to practice good CSR.

In the energy sector, sustainability will continue to be of major importance, regardless of the economic outlook and uncertainty. In particular, being able to sustain the environment and show that there is minimum harm in the short term. However CSR and building social capital will remain the rationale for managing reputational risk. Ultimately, responding to social pressures through CSR programmes will continue to be the best practice

The NGO Perspective:

A Case Study of The Cotton Tree Foundation Former Chairman Allyson Hamel-Smith & General Manager Josephine Emmanuel detail the journey to Improving its Governance Practices, while still remaining focused on its Social Development Objectives A Veritable Noah’s Ark of Board Expertise (1993-2005) Established in 1993, the Cotton Tree Foundation’s (CTF) Mission of ‘improving the life chances’ for the residents of St. Ann’s, Cascade, Belmont, East Dry River and environs through the vehicle of education still rings true today. As an NGO of twentytwo years standing, Cotton Tree has had a rich journey characterized by generative leadership thinking as to how to wrestle significant community ills. These included poverty and unemployment, poor access to the right types of educational opportunities and support systems, increasing single parent and extended family structures, violence and crime. These have presented persistent and intriguing challenges over time and up to the present day.

internally self-contained, driven by relatively strengths and weaknesses of CTF to external small funding budgets and primarily opportunities so as to maximize social impact. implemented by volunteers. This functional shift allowed for greater generative thinking on the ‘sense of Cultural Fit, the Deal Breaker (2005-2015) community problems’ and opportunities for This active agency board governance model driving strategy, policy and problem solving. would slowly lose its efficacy as the demand for, and complexity of services required outstripped exponentially the supply; given increasing levels of disruption and fracturing in the way communities engaged economically, socially and psychologically. These socio-economic dynamics would challenge traditional thinking and frame a new understanding of how CTF should be governed.

Maintaining its fidelity to its Mission, the Today a multi-delivery approach with robust board set about accentuating its strategic role, attention to ‘best practice’ and documentation which essentially sought to shift the leadership of outcomes, drives the quality assurance of In 1993, the architects of the CTF, Senior mindset from one of ‘active doer’ to ‘ active CTF’s interventions. Since no single Counsel Desmond Allum, Justice Ulric Cross thinker’; aligning the internal capabilities, programme can meet the diverse development et al framed the Foundation’s intervention narrative as a veritable Noah’s Ark of board Cotton Tree Foundation’s Current Sustainability Model expertise in the areas of law, education, public relations and fundraising. The approach, as Create a stable, responsible & safe all recognisable approaches back then, was environment that all children need, to to utilise a voluntary, ‘hands on’ multiplier build and sustain positive self-worth effect model of one-on-one engagement, to deliver a community message of hope and Identify programmes that combine effective, centreshared understanding. CTF addressed issues based care & education for children with services for parents, so families can increase the likelihood that of early childhood development and children will be prepared to succeed in school and life established partnerships with parents, focusing on reducing risk and improving life chances Provide specialized clinical services in the areas of learning, self regulation and socio-emotional development for children struggling from the early years. The governance model of CTF up until roughly 2005 posited the role of the board as frontline functionary with active responsibility for project management, operational oversight and community relations. This required a tremendous level of personal engagement by board members in the day-to-day activities of the foundation and came at great personal sacrifice. Programming was very much

with mainstream academics; utilising a converging network model of professional partnerships both local and foreign

CTF 's Achievements Early Childhood Care and Education Centre After School Homework Centre Summer Camp/Remedial Literacy Numeracy Programmes/Scholarship Programme Significantly Non-monetised Professional in Service Learning Programme that facilitates robust Diagnostic Testing Strong Parental Wellness Programmes Private Sector/Government Buy-in Broad Community Reach

19 community at highly subsidized or no costs; Sustainable Capacity Building the Primary all grounded in CTF’s core values/beliefs Governance Function of CTF’s Board that: 1. Early experiences influence health and development across an individual’s lifespan 2. To successfully navigate a community’s long term transition, there must be a system of early detection and sustained intervention. CTF commits to both talented and at risk children 3. Effective child intervention programmes must be embedded in pedagogy, neuroscience and developmental research regarding what works, and must have community reach

of children, CTF’s governance strategy targets multiple funding sources for a range of needs along a continuum of community service, facilitated by converging local and foreign expertise1, made readily available to the

4. A significant component of CTF’s built capacity must result from early and sustained collaboration with professional partners, major funders, public and private sector enterprises and community based organisations.

1Currently CTF has an ongoing In Service Learning Programme with UWI St. Augustine; Boston

Children’s Hospital and Seaton Hall University aimed at leveraging developmental and psychoeducational assessments and related instructional practice in the educational programmes delivered at its ECCE and Home Work Centre

Sustainability Planning has assumed prominence in CTF’s current governance model. The foundation now has a full-time staffing structure that includes a General Manager who reports to the board. Board meetings are structured to ensure that there is active learning based on reported programme outcomes and their relationship to wider strategic initiatives. CTF’s 2015 governance model places board members at the intersection of the board room and the community or the board room and the organisation itself; with prime responsibility for making critical sense of the ever changing environment and engaging the type of generative thinking necessary for meaningful social impact

Building brand equity through cultural stakeholders

By Candace Ali

his year has been a landmark year for Massy Trinidad All Stars Steel Orchestra. The band copped first place in Panorama 2015, took home the win for Band of the Year, was awarded the People’s Choice Award 2015 and more recently was declared the top steel band in the world at the International Panorama Competition 2015. In addition to their series of landmark wins for 2015, this year also marked the band’s 80th Anniversary. Defining the relationship: Faciliate to Elevate, not Dictate Massy came on board as the band’s sponsor in 1985, under the leadership of the then CEO Sidney Knox. Knox truly understood corporate social responsibility, even at that time before the formal practice of CSR was truly embraced. He always believed in empowering the band to make their vision a reality, and that it was also about honouring, respecting and contributing to the vision that the band articulated for themselves. The relationship was never one of dependency and the band’s Finance Manager, Nigel Williams, strongly endorsed that position.

“Massy has stood by us for years but we both understand – the band and Massy as a corporate entity – that being financially dependent on Massy would never allow us to achieve our developmental goals. What we have in Massy is consistent and steady support” – Nigel Williams. Building brand equity Fast-forward to 2015 and it is an undisputed fact that CSR is one of the key mechanisms for building brand equity. Marketing researchers Steve Hoeffler and Kevin Keller describe six ways in which CSR can help an organization build brand equity: 1. Building brand awareness 2. Enhancing brand image 3. Establishing brand credibility 4. Evoking brand feelings 5. Creating a sense of brand community and 6. Eliciting brand engagement

Massy believes that Trinidad All Stars has been a worthy brand partner in all these respects and provides the right balance of how they present themselves as a brand. Their accomplishments on the national and world stages have built immeasurable brand awareness for Massy, while enhancing the Massy brand image through partnership. Their ethical, fair and democratic style and process endorse brand creditability and their passionate displays of musical talent undoubtedly evoke the brand feelings of Massy – feelings of a passionate and purpose-driven organization. The relationship also creates a sense of brand community as part of the community of stakeholders, specifically cultural stakeholders. The relationship with Trinidad All Stars is also one of the key points through which the corporation engages its many audiences. As a brand with a strong consumer-facing presence across Trinidad and Tobago, it touches even more lives when this band, bearing the Massy brand, delights national, regional and international audiences.

Governance on the tenors and independence on the ‘bass’ The band’s demonstration of good governance and prudent financial management have been critical to the partnership with Massy. Each year the band produces audited financial statements and conducts business meetings to present its performance and plans to its members. 2015 was a landmark year as well, when, added to their performance achievements, they were able to successfully purchase property – the Duke Street property adjacent to the panyard – as part of their longterm strategy for financial self-sufficiency and sustainability. In addition, sales from the band’s on-site bar, merchandise sales and use of the panyard for paid parking, also contribute to their revenue stream. The extra income helps the band fund a number of initiatives, from envisioning a benefits package for long-standing members to incorporating the Shiv Shakti dancers who added the extra ‘sauce’ in their winning performance of ‘Curry Tabanca’ in August 2015 at the first ever International Panorama.

A long-term partnership between Massy and Trinidad All Stars Steel Orchestra Partners from the yard, to the drag and on the stage All relationships suffer from low points and the Massy-All Stars is no exception. In the 1980s when the recession in Trinidad and Tobago hit, and the then Neal & Massy had to divest its asset base, funding to the band ceased for a period of time. In the later 1990s, the company re-positioned itself and recovered post-recession and the relationship was slowly restored. Key to the rebuilding of the partnership was a commitment to make the relationship more purposeful, more value-based and more than a financial contribution. Perhaps the most fitting metaphor for the evolution of the relationship is the fact that it is not unusual to find the Group’s President and CEO, Gervase Warner, outfitted from head to toe in the colourful band uniform, demonstrating the same euphoria as the players during the final night performance on stage for Panorama. Massy has used a number of strategies to give back in more meaningful ways to the band. In terms of leadership

development, the company has facilitated leadership meetings, and co-opted the support of an external facilitator to work with the All Stars Executive Team. Massy, as it has done for its employees, has also extended counselling support to members facing personal challenges. Giving the panman the right sticks to play the right tune In addition, Massy has also ‘cross-pollinated’ CSR programmes by involving band members in its flagship programme, the Boys to Men Programme which focuses on building leadership competencies in young men. When they invited members from Massy Trinidad All Stars to participate in the Boys to Men programme, which involves weekly meetings for an 8week period in various communities, a few young band members participated. One of the young men, Shomari Babb, who is a core member of Trinidad All Stars, is now one of the leaders of the Boys to Men programme.

Boys to Men really showed me how to make more responsible choices and that has enabled me to bring a whole new dynamic to my role as a member of Trinidad All Stars. Boys to Men helped me understand situations and differences and people and helped me bring out my leadership qualities. For instance, I have really learned how to listen and recognize my shortcomings. I now understand that people are diverse and have different strengths and I have been able to translate that understanding to my role as a band member of All Stars. I can appreciate different perspectives and work with people with different points of view. - Shomari Babb A song of empathy and hope for east port of spain Massy co-opted the band in a critical intervention in the East Port of Spain community when it chose to upgrade and refurbish St. Phillips Government Primary School for the United Way National Day of Caring 2015. Band members joined with Massy Limited employees to undertake a number of renovations including repainting and cleaning the school.

The members were appalled at the conditions under which the students and teachers have to operate. They were taken aback by what they saw but they felt that they had made a meaningful contribution to the community. They left with a feeling that more should be done. They felt gratified but also with a sense of community spirit and for me it hit closer to home because my sister teaches there and it helped me to see what she goes through every day - Denise Riley, Member, Manager Administration, Massy Trinidad All Stars. Massy Trinidad All Stars has been a true partner in the Corporate Social Responsibility drive as critical contributors to Massy’s corporate brand equity. Their systems and process set a very high standard which other culture-based institutions and groups can learn from, in terms of governance, transparency and sustainability. More importantly, for both the sponsor and the band, their values are closely aligned and that drives the success of the relationship, redounding in many successes for the band as well as the overall advancement of Massy Trinidad All Stars as true cultural leaders in Trinidad and Tobago

Giselle Jeanne-Marie Laronde-West is Senior Manager, Public Affairs & Communications at Angostura Limited.

Social impact beyond the workplace – A perspective from Giselle Laronde-West (Excerpted from article by Donna P. Ramsammy of Virtually Yours T&T Ltd for the 2015 edition of the T&T Corporate Social Responsibility Review) “Reciprocity”, says Giselle Laronde-West, is the word that best describes Corporate Social Responsibility or CSR as popularly termed. “If we take from the earth, we must give back to the earth…it is a natural exchange.” As creatures of the earth, Laronde-West believes, we work in harmony with nature when we give of “ourselves, our gifts our talents.” Laronde-West insists that it is not just the act of corporate giving that is important. She considers it equally important that the principle is well understood. She says at Angostura, the notion of giving is embedded into their business practices. Many employees, she says, are involved in some way in the community, and the company supports these activities wherever feasible.

Laronde-West is particularly proud of how some employees have taken recycling on-board, even passing on that knowledge to their families and methodically policing the system themselves to ensure compliance. Their children, along with children from schools in the fence-line areas and community leaders, are part of annual workshops on recycling, replanting and energy conservation on and outside World Environment Day.

But for this former Miss World, it is more than a business philosophy. Her conviction is that the true beauty in giving “comes from the heart.” At a very personal level, she is engaged with helping young women to get in touch with, and to develop their best selves. She lectures on etiquette, attire, attitude and the many possible ways to reflect the positive characteristics and ignite the human spirit for success and lasting happiness. There is an internal “It’s all about how we component to social she says. “We as practitioners, have the greatest communicate”, responsibility that LarondeMore than how we speak, the West believes is often opportunity for social impact beyond the way in which we project overlooked but which ourselves speaks volumes… A n g o s t u r a t a k e s v e r y workplace…That to me is not about work – I’m glad that I can use my seriously. Employees’ wellown experience in the wider it’s about sustainability” being at work and at home is world, to help young women an important part of find that voice.” The girls in strengthening communities and creating a stable, secure society. turn, pass on that learning in what Laronde-West describes as a “good chain reaction.” A series of programmes has been developed by a cross-functional internal CSR committee – all aimed at creating responsible and “We as practitioners, have the greatest opportunity for social engaged citizens from within the Angostura workforce. impact beyond the workplace. That’s because we have the Programmes that teach safe practices in and around the office knowledge, the information and the expertise to make it happen and home, preservation of the eco-systems in the way domestic for others. We should expand our participation in our niche waste is handled, conservation of energy, and good health area to the wider community. This is how one person doing a practices top the list of scheduled information and training little bit of good somewhere can make a whole lot of difference. programmes. That to me, is not just about work – it’s about sustainability.”

The Power to Make a Difference through Corporate Social Responsibility By ©Republic Bank Limited, Editorial and Social Investment Departments One of the pillars of Republic Bank’s Power to Make A Difference Programme is the Power to Learn. This is where and how Republic Bank hones its focus on developing schools and young people across Trinidad and Tobago; putting steps in place to help them receive the education they deserve. There are many factors that lead to the developmental marginalisation of young people (which we defined as schoolaged children), such as physical, mental, and emotional disabilities, lack of family structure, financial stability and resources. A recurring theme presented itself in a variety of iterations as a common contributing factor to the developmental marginalisation - literacy and the access to education. Trinidad and Tobago, as at the 2012 UNESCO survey, has a 99.58% literacy rating, one of the highest in the world. All indicators predict that rating to rise in the future. In 2009, Trinidad and Tobago participated in the triennially-held Programme for International Student Assessment (PFISA), where 15-year-olds are tested in reading, mathematics and sciences. We ranked 54 out of 74 countries around the world.

Singapore and Finland received the highest ratings in that assessment. Republic Bank was first approached by the Trinidad and Tobago National Commission for UNESCO two years ago to create a partnership to improve our national literacy rating and we took the opportunity for a number of reasons. SUSTAINABILITY THROUGH PARTNERSHIP AND EMPOWERMENT UNESCO’s “Parenting for Literacy” Programme, back in 2014, was a step in the right direction. This programme’s novel approach sought to improve the reading standards of infants by teaching and empowering parents. While children spend most of their time in school, the time that they spend with their parents remains one of their most impactful experiences. Through the Programme, approximately 1000 parents now have the educational skills that will not only serve their children well, throughout the course of their lives, but also, in the process, strengthen the bonds between parent and child, and endure for generations to come.

Our latest commitment, a four-year one, to the Leading for Literacy Now Programme, calls for us to think outside the box of the business-as-usual approach to corporate social responsibility. This approach holds us further accountable to relevant key stakeholders in this regard – the communities we empower, the schools we help build and the youth who will become our future leaders, our employees and, of course, our shareholders. Today's stakeholders expect much more from corporations and society’s expectations are only going to increase in the future. As the definitions of corporate social responsibility continue to change, Republic is confident that the private sector will continue to rise to the occasion; those that find balance and live up to their social contract will create substantial long-term value. CREATING A CORPORATE GUIDING PHILOSOPHY FOR CSR When Republic started the Power to Make A Difference Programme back in 2004, after decades of consistent community and social investment, we believed then, as we wholeheartedly do now, that we have a responsibility to work with those individuals and groups whose vision of a brighter tomorrow simply needed that extra assistance to take flight and become reality. Our Power to Make a Difference programme isn’t about flouting money for the sake of good public and media relations. It’s about seriously owning up to the responsibility that we have to our stakeholders – the entire national community – to transform, innovate and focus on measureable social returns and benefits. Success depends on coordination and teamwork with the community. It requires long-term vision and planning and leaders from every aspect of our national community. This is why our ongoing partnerships with organisations like the Trinidad and Tobago National Commission for UNESCO are

necessary. The Commission’s latest programme, will positively affect primary school students, school principals, teachers and parents, improving their learning environments and developing literacy skills across various levels Fact File • Leading for Literacy Now was first launched in Trinidad and Tobago in 2013 • The launch of the 2nd Phase of the “Leading for Literacy Now” primary school project was held on May 6, 2015 • The project trains 1st and 2nd year primary school teachers, principals and parents on how to better assist the children in literacy development and provide an appropriate environment for developing their literacy skills. • The Programme will run from August, 2015 to July, 2016 and will consist of seven stages. • Republic Bank has committed over TT$1.4 million for each of the next four years of the project. • Over 3,000 children in 40 primary schools have already benefited from the Programme

What every business person should know

Trade Shows and Exhibitions

CUBA

Cuba Business & Investment Forum - November 2-7, 2015 Euroconvention Global - in collaboration with the EU Delegation in Cuba and the Cuba Chamber of Commerce - is delighted to announce the Cuba Business & Investment Forum that will take place in Havana at Expo Cuba on November 4, 2015. This flagship trade and investment event will be hosted within the framework of and on the occasion of the 2015 Havana International Fair (FIHAV). This is the largest annual mutli-sector trade fair in Cuba, taking place from November 2-7, 2015. The 2014 edition of FIHAV welcomed over 1,200 companies from 65 countries. For further information please contact: Michel Masquelier, Event Manager - Tel: +32 2 662 16 12 or Email: administration@euroconventionglobal.com

AMSTERDAM Future of Polyolefins 2016 – January 20-21, 2016 ACI’s Future of Polyolefins 2016 will be taking place in Amsterdam, The Netherlands on 20-21 January 2016. For its fourth edition, the conference will give updates on the global polyolefin market and its developments, as well as focusing on feedstock availability and sustainability challenges. Over the two days, the event will provide an in-depth look into polyolefin production processes and latest technology advancements, through case studies, interactive sessions and panel discussions led by industry experts. Once again, the conference will bring together senior executives from petrochemical companies, plastic converters, technology providers, chemical intermediate suppliers, researchers, as well as other influential stakeholders amongst the value chain. For further information please contact:Mohammad Ahsan - Phone: +44 (0) 203 141 0606, Email: mahsan@acieu.co.uk or Website: http://app.streamsend.com/private/

PUERTO RICO CANTO's 32nd Annual Conference & Trade Exhibition (CANTO 2016) - July 31-August 5, 2016 CANTO is recognized as the leading trade association of the ICT sector for shaping information and communication in the Caribbean. Founded in 1985 as a non-profit association of 8 telephone operating companies, CANTO has now grown to over 123 members in more than 34 countries. A Board of Directors appointed by the membership directs policy of the Association. This strategy is executed by the staff of a permanent Secretariat based in Trinidad and Tobago. CANTO's 32nd Annual Conference & Trade Exhibition (CANTO 2016) will attract Caribbean telecommunication Operators, Suppliers, Manufacturers, Regulators and Ministers of government will convene at the Sheraton Old San Juan Hotel & Casino from the July 31-August 5, 2016 for the greatest ICT/Telecoms Expo in the Caribbean. In addition, CANTO 2016 will showcase an exhibition which boasts 60 plus booths within the conference hall, where all lunches and coffee breaks will be served. For further information contact: Tricia Balthazar, Service Development Manager - Telephone: 868 -622-5582 or Email: tbalthazar@canto.org.

INDIA INDIA INTERNATIONAL TEXTILE MACHINERY EXHIBITIONS SOCIETY- December 3-8, 2016 The 10th India International Textile Machinery Exhibition is a mega event for the latest Textile Machineries, Accessories, Textile Technology, Raw materials and related services. India ITME-2016 is expected to cover an area of 150,000 square metres, with an exhibitor’s strength of 1500 from 92 countries in 17 chapters offering total solution to the Textile Industry. India today offers an unparallel opportunity for Textile Machinery Manufacturers. India is a convenient converging point for all the neighboring countries to buy and sell, for Technical education, Joint Ventures, Investments, etc. Cost-wise, it is comfortable for most of Asian/African nations to visit, stay and purchase. For further information contact: Email: itme@india-itme.com or visit Website: www.india-itme.com

Communications Committee The Communications Committee is a Boardappointed Committee of the Chamber, chaired by the sitting President. Its role is to conceptualise and execute the Chamber’s communications strategy as guided by the Board of Directors. As such the committee oversees the publication of CONTACT magazine, three weekly newspaper columns, a weekly radio programme, media releases and other electronic newsletters and bulletins.

Guardian newspaper. CONTACT may be read online at www.contact-tt.com. The weekly “CONTACT with the Chamber” radio programme airs on I95.5 FM at 7:25 a.m. each Tuesday. It represents a Chamber editorial and is voiced by the Chamber’s Chief Executive Officer, Catherine Kumar. Programmes are available on the Chamber’s website www.chamber.org.tt and Facebook.

Each CONTACT magazine is thematic so that two thirds of the articles explore the issues related to the particular theme. The magazine is distributed free of charge to Chamber members. Complimentary copies are given to Members of Parliament, diplomatic missions, hotels and subscribers to the

The main issues that form the basis of the Chamber’s lobbies are largely reflected in the newspaper columns. Since 2004, the Chamber has maintained three weekly newspaper columns - Wednesdays in the Business Express and Thursdays in both the Guardian Business and the Newsdays Business Day. Writing on the premise that all issues which affect the

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national landscape also affect business, the columns serve to express Chamber opinion and policy. Topics for articles have included the economy, trade, crime, education, agriculture, health, the environment and culture. The committee encourages Chamber members to submit columns or ideas for columns on topics of interest. Columns may be between 700-900 words in length and the Chamber reserves the right to publish, subject to review by the Committee. The weekly columns may be accessed on the Chamber’s website at www.chamber.org.tt. For further information on this committee kindly contact Halima Khan, Communications Officer, Marketing and Communications, at 637-6966 x 1227 or email hkhan@chamber.org.tt.

Finance & Economy

Economic and Financial Statistics Domestic Indicators Table 1: Summary of Economic Indicators INDICATOR Real Sector Activity Real GDP (y-o-y % change) Energy (y-o-y % change) Non Energy (y-o-y % change) Headline Inflation (y-o-y % change) Headline Inflation (% average) Core Inflation (% average) Unemployment Rate (% average)

2015

2014

2013p

2012

2011

-1.7* -3.3* -0.7* 5.6** 6.0*** 1.7*** 3.7*

0.9 -2.0 2.8 8.5 5.7 2.0 3.3

2.1 0.2 3.5 5.6 5.2 2.4 3.7

0.3 -1.9 1.8 7.2 9.3 2.5 5.0

-1.2 -3.7 -0.6 5.3 5.1 1.7 4.9

Source: Economic Bulletin July 2015, Central Bank of Trinidad and Tobago *Q1-15 ** at June 2015 *** For the period Oct 2014-May 2015

Regional Indicators Country

Real GDP (%) 2014 2.4 1.3 -0.3 3.4 1.1 7.3 1.5 3.8 2.8 0.5 7.0 -1.1 1.1 2.9 0.8

Antigua and Barbuda The Bahamas Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica St. Kitts and Nevis St. Lucia St. Vincent and the Grenadines Suriname Trinidad and Tobago

2015e 1.9 2.3 0.8 2.0 2.4 5.1 1.5 3.8 3.3 1.7 3.5 1.8 2.1 2.7 1.0

Current Account Balance/GDP (%) 2014 2015e -14.5 -10.7 -21.6 -12.4 -9.1 -5.1 -5.7 -4.5 -13.0 -13.1 -3.1 -2.4 -23.6 -17.4 -15.9 -16.4 -5.8 -3.0 -6.4 -5.0 -10.7 -16.4 -12.4 -13.4 -29.4 -27.6 -7.3 -7.8 8.3 5.2

General Government Debt to GDP (%) 2014 2015e 98.7 106.9 60.4 61.6 100.4 102.5 76.3 75.7 76.6 78.5 35.1 30.7 107.2 107.1 65.8 70.6 26.7 27.6 140.6 132.8 81.0 74.5 83.9 88.0 75.1 77.1 34.1 38.3 37.6 39.5

Source: Economic Bulletin July 2015, Central Bank of Trinidad and Tobago e â&#x20AC;&#x201C; Estimate

International Indicators Advanced Economics - Quarterly GDP Growth States1

United United Kingdom Euro Area Japan

2013 Q1 1.9 0.6 -0.4 1.3

Q2 1.1 0.6 0.4 0.7

Q3 3.0 0.7 0.2 0.5

2014 Q4 3.8 0.4 0.3 -0.2

Q1 -0.9 0.9 0.2 1.1

Q2 4.6 0.9 0.1 -1.7

2015 Q3 4.3 0.7 0.2 -0.5

Q4 2.1 0.8 0.4 0.3

Q1 0.6 0.4 0.4 1.0

Q2 2.3 0.7 n.a. n.a.

2015 Q3 7.3 8.4 0.9 -0.6

Q4 7.3 6.6 0.4 -0.3

Q1 7.0 7.5 -2.2 -1.6

Q2 7.0 n.a n.a. n.a.

Source: Economic Bulletin July 2015, Central Bank of Trinidad and Tobago 1 Adjusted at annual rates

Emerging Economic - Quarterly GDP Growth China India Russia Brazil

2013 Q1 7.8 4.7 0.7 2.6

Q2 7.5 7.0 1.2 4.0

Q3 7.9 7.5 1.3 2.4

2014 Q4 7.6 6.4 2.1 2.1

Q1 7.4 6.7 0.6 2.7

Q2 7.5 6.7 0.7 -1.2

Source: Economic Bulletin July 2015, Central Bank of Trinidad and Tobago 1 Adjusted at annual rates

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

Finance & Economy

Economic Outlook OUTLOOK In the near to medium term, global growth forecasts remain muted. In 2015, growth in advanced countries is projected to improve gradually; however, growth is expected to slow in emerging markets, reflecting reduced prospects for some large emerging market economies, notably commodity exporters. In the July 2015 World Economic Outlook Update, the IMF revised its projections for global growth downward to 3.3 per cent in 2015, from an April 2015 estimate of 3.5 per cent. Growth in advanced economies is expected to increase from 1.8 per cent in 2014 to 2.1 per cent in 2015, while growth in emerging markets and developing countries is projected to slow from 4.6 per cent in 2014 to 4.2 per cent by year’s end. Regionally, lower energy prices and a stronger US economy are expected to improve the outlook for the Caribbean, particularly the tourism dependent economies. In line with current trends of global commodity exporters, prospects for real GDP growth in Trinidad and Tobago remain tentative. In 2014, the necessary infrastructural, upgrade and maintenance works undertaken by major energy producers resulted in an overall fall in natural gas output -- a trend which continues in 2015. Despite this general trend, however, recent amendments to the fiscal regime resulted in higher crude oil

production and will continue to serve as a much needed boost to the refining sub sector which benefits from higher equity crude. In the non-energy sector growth is expected to be positive, albeit slower than in previous years. Capital projects undertaken primarily by the Central Government are expected to stimulate activity predominantly in the construction sub-sector, providing some measure of fiscal stimulus to the economy. The uncertainty surrounding the timing of the monetary policy normalization in the US remains an immediate downside risk to the economy of Trinidad and Tobago. Narrowing interest rate differentials could heighten risks of capital outflows and exchange rate pressures. Furthermore, potentially lower foreign exchange earnings will be as a result of two factors: lower energy prices coupled with lower tax revenues due to higher capital allowances for energy companies. Moreover, critical spending on security, healthcare and social programmes is expected to continue. Consequently, inflationary pressures may be stoked by higher-than-average fiscal injections as well as the possible effects of adverse weather conditions on the prices of agricultural supplies. Source: Central Bank Economic Bulletin July 2015

The Chamber’s “CONTACT with the Chamber” radio series The Chamber's "CONTACT with the Chamber" radio series is a five minute programme which airs every Tuesday at 7:25 a.m. on the I95.5FM morning show. This programme is voiced by the CEO of the Chamber, Catherine Kumar and is one of the means by which the Chamber communicates with members and the public at large. The series focuses on business-oriented subjects, social responsibility and other issues affecting our country.

We also open our doors to all members interested in coming on board as short-term sponsors of “CONTACT with the Chamber”, for packages of one, two or three months. Sponsorship is at a cost of TT $900.00 per programme. Your organization will be credited on I95.5FM and recognized through other communications produced by the T&T Chamber. The T&T Chamber thanks our sponsor for the quarter VEMCO Limited

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For more information on sponsorship and branding opportunities please contact: Halima Khan, Communications Officer, Trinidad and Tobago Chamber of Industry and Commerce Columbus Circle Westmoorings P.O Box 499 Port of Spain. Tel: (868) 637-6966 Ext. 1227 Fax: (868) 637-7425 Email: hkhan@chamber.org.tt Website: www.chamber.org.tt

Finance & Economy

Half Year 2015 Review Local Market Summary Indices movement for the First Half of 2015 (HY15) was varied on the local market with both the Composite and Cross Listed Indices posting advances while the All Trinidad and Tobago Index ended in negative territory. The Composite Index climbed 11.04 points, notching a minimal 0.96 per cent half yearly gain to close the six month period at 1,161.95. The All Trinidad and Tobago Index slipped 12.63 points or 0.64 per cent to close at 1,970.55 and the Cross Listed Index increased 4.65 points or 11.15 per cent to end the period under review at 46.37. In the Second Quarter (Q215) alone, the Composite and Cross Listed Indices posted gains of 0.67 per cent and 5.10 per cent respectively and the All Trinidad and Tobago Index shaved 0.07 per cent. In HY15, advances outnumbered declines by a ratio of 13 to 11.

shares traded in HY15 declined 22.64 per cent from $592,944,512.13 in HY14 to $458,714,379.75 in HY15. Comparing Q215 on Q214, despite the significant increase in trading activity, the value of shares traded fell 7.92 per cent from $265,054,911.85 in Q214 to $244,054,702.88 in Q215. In HY15, Trinidad Cement Limited (TCL) was the volume leader capturing 21.12 per cent of the total volume traded with 7,821,898 shares changing hands. Next was National Commercial Bank Jamaica Limited (NCBJ) with 14.93 per cent of the trades for the half year period or 5,529,382 shares. The third volume leader was Jamaica Money Market Brokers Group Limited (JMMBGL) with 13.45 per cent of the market or 4,980,547 shares traded. This was followed by Sagicor Financial Corporation (SFC) with 9.11 per cent of the trade volume or 3,374,232 shares crossing the floor of the exchange. First Citizens Bank Limited (FIRST) was next in line capturing 5.69 per cent of the market activity in HY15 with 2,107,735 shares changing ownership.

For HY15, declines were led by One Caribbean Media Limited (OCM), which fell 10.40 per cent or $2.60 to $22.40. Massy Holdings Limited (MASSY) was next, down 5.79 per cent or $3.95 to $64.30. The third major decline HY15 also saw 61,000 Sagicor Financial was GraceKennedy Limited (GKC) which Corporation Convertible Redeemable slipped 4.11 per cent or $0.15 to $3.50. Preference (SFCP) shares traded with a value of US$67,100.00. The price remained Second Quarter Dividend Payments unchanged at US$1.10. On the TTD Mutual Fund Market, 8,464,073 CLICO Investment Fund (CIF) units traded in HY15 with a value of $191,678,050.02 compared to HY14 which saw 5,745,790 units traded valued at $125,956,651.77. CIF closed HY15 at $22.60, down 1.99 per cent or $0.46 for the six month period. In addition, 25,000 Praetorian Property Mutual Fund (PPMF) units traded with a value of For HY15, volumes traded on the First Tier $78,260.00. PPMFâ&#x20AC;&#x2122;s price fell 11.43 per cent Market fell 25.83 per cent with 37,030,269 or $0.40 to end at $3.10. shares crossing the floor compared to 49,927,173 shares in the corresponding half The top performer for HY15 was National year period in 2014. However, Q215 on Q214, Flour Mills Limited (NFM), up an outstanding trading activity was up 46.47 per cent from 73.91 per cent or $0.85 to close the six month 13,549,385 shares (Q214) to 19,845,892 shares period at $2.00. The second major advance (Q215). When compared to the previous was NCBJ, posting a 55.65 per cent gain or quarter (Q115), market activity rose 15.49 per $0.64 to end at $1.79. TCL followed, rising cent from 17,184,377 shares. The value of 16.00 per cent or $0.40 to close at $2.90. Contact â&#x20AC;˘ Vol.15 No.3 2015

Finance & Economy

Highlights for the Second Quarter of 2015 in HFC Bank (Ghana) Limited is twentyJune 2015 six million two hundred and twenty-six • GraceKennedy Group CEO Don Wehby thousand, three hundred and fifty-two United announced that it has entered into the States dollars and forty one cents previously reported conditional agreement (US$26,226,352.41). for the sale of GraceKennedy’s 58.1% shareholdings in Hardware & Lumber • GraceKennedy Group CEO Don Wehby Limited (H&L) with Greystone Equity has announced the planned divestment of Partners Inc. and/or nominee and who has its Hardware & Lumber (H&L) subsidiary nominated Argyle Industries (Jamaica) inclusive of the Rapid True Value and Agro Limited as its nominee. The transaction terms Grace businesses. The decision is a strategic include a maximum price of J$18.50 per one in keeping with GraceKennedy’s goal ordinary share with the agreement subject to of expansion in foods and financial services conditions and with completion anticipated in Jamaica and internationally. The by the end of July. Company has confirmed that on April 22, 2015, it entered into a conditional agreement • Republic Bank Limited (“Republic Bank”) for the sale of its 58.1% shareholdings in advised that on June 2, 2015 the Board of Hardware & Lumber Limited (H&L) which Directors approved the restructuring of is reported under the Retail & Trading Republic Bank with respect to the formation operating segment. of a holding company to be called Republic Financial Holdings Limited. This April 2015 restructuring is to be effected by a vesting • Fortress Caribbean Property Fund Limited, order under the Financial Institutions Act which was previously listed on the Trinidad chap 79:09 and will have no impact on & Tobago Stock Exchange (the Exchange) shareholders and customers. The restructuring had its Articles of Incorporation amended will take effect on October 1, 2015 and is on September 26, 2013 and was converted subject to shareholder and regulatory into a segregated cell company called approval. Fortress Caribbean Property Fund Limited, SCC (the Property Fund). The new May 2015 segregated cell company has two (2) funds • Agostini’s Limited (AL) and Goddard called Fortress Caribbean Property Fund Enterprises Limited (GEL) are pleased to Limited, SCC-Development Fund (CPFD) advise our shareholders, that we have agreed and Fortress Caribbean Property Fund to the formation of a jointly-owned company, Limited, SCC-Value Fund (CPFV). Caribbean Distribution Partners Limited 54,944,803 units in Fortress Caribbean (CDPL), into which will be transferred all of Property Fund Limited, SCC-Development the companies in our respective groups in Fund (CPFD) and 55,652,768 units in the Fast Moving Consumer Goods (FMCG) Fortress Caribbean Property Fund Limited, sector with effect from July 1, 2015. SCC-Value Fund (CPFV) were listed on the Exchange effective April 30, 2015. • Republic Bank Limited (Republic Bank) announced that it has acquired the controlling • The Trinidad and Tobago Stock Exchange shareholding of HFC Bank (Ghana) Limited (TTSE) received notice that on April 10, (“HFC Bank”) following its mandatory 2015, MASSY entered into a Project takeover offer (“MTO”) to the shareholders Agreement in respect of a Project that of HFC Bank to purchase ordinary shares of proposes the construction, ownership and no par value in HFC Bank. Republic Bank operation of a Gas to Petrochemicals also advised that pursuant to section 64(1)(b) Complex. The investment of a 10% stake of the Securities Act, 2012, the final cost of in Caribbean Gas Chemicals Limited (the acquiring the further shareholding of Project Company) was approved by the seventeen point two five per cent (17.25%) Company’s Board of Directors.

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• In support of the Group’s strategic growth initiative, One Caribbean Media Limited (OCM) is pleased to announce that on April 13, 2015 the Group acquired a 40% interest in an innovative technology company. This acquisition represents less than 0.04% and 0.05% of OCM’s assets and net book value respectively. • On March 31, 2015 at 4:00 p.m. Trinidad Cement Limited (TCL) closed its offer for the pro-rata Rights Issue of 124,882,568 new shares, which was open exclusively on the Trinidad and Tobago Stock Exchange. The shares were listed on the Stock Exchange on Wednesday April 8, 2015 and became effective on Thursday April 9, 2015, thus increasing the Company’s issued share capital to 374,647,704 Ordinary Shares. • Republic Bank Limited (Republic Bank) announced that on March 31, 2015 it executed a purchase and sale agreement with RBC Financial (Caribbean) Limited for Republic Bank to acquire RBC Royal Bank (Suriname) N.V. through the purchase of Royal Overseas Holdings (St. Lucia) Limited at an estimated cost of US$39.8 million. While this transaction is anticipated to be finalised within a few months, Republic Bank advised that the completion of same is subject to both parties obtaining all regulatory approvals. Fixed Income Market Summary The latest Monetary Policy Announcement released by the Central Bank of Trinidad and Tobago (CBTT) indicated that headline inflation fell to 5.50 per cent year-on-year in May 2015 from 6.10 per cent in February 2015. Food price inflation, which continues to be the main driver of headline inflation stood at 8.50 per cent in the twelve months to May 2015. In June 2015, the yield on the 3-month, 6-month and 1-year Open Market Operations (OMOs) rose to 0.70 per cent, 0.85 per cent and 1.71 per cent respectively from 0.55 per cent, 0.75 per cent and 1.70 per cent in May 2015. The Central Bank increased the Repo Rate, the rate at which it lends to commercial banks, for a fifth consecutive time by 25 basis points to 4.00 per cent.

Finance & Economy

Key Rates

Global Market Indices

Energy Prices

Contact â&#x20AC;˘ Vol.15 No.3 2015

Energy Update

The New Energy Economy By David Renwick, Energy Journalist HBM (Gold)

here will oil and gas output come from, as Trinidad and Tobago moves into the third decade of the 21st century and currently hydrocarbon producing wells on land and offshore ineluctably deplete?

I dealt with deep water activity in great detail in the last issue of CONTACT, so there is no need to repeat all that here. Suffice it to say that heights not seen since the peak year of domestic crude output (1978 – 229,527 b/d) could be scaled on the back of substantial discoveries, when it is considered that MEEA From four sources, according to the minister in-house estimates put deep water potential of energy and energy affairs at the time of at between 3.1 billion to 8.2 billion barrels. writing, Kevin Christian Ramnarine and any successor to him will probably not disagree As for recovering more of the oil in existing reservoirs when primary pressure is no longer with his prognosis. enough to bring it to the surface, a mechanism 1. Deep water wells (assuming the present is required to achieve such recovery and the deep water exploration programme, flavour of the moment in that regard is carbon conducted by BHPBilliton as operator of dioxide (CO2) injection. all nine such blocks, is successful). 2. Getting more oil and gas out of existing Of course, steam and water can also be utilised productive wells by means of enhanced oil but CO2 injection has some very important recovery (EOR) or compression as primary advocates, who have caught the minister’s attention, not least of all geologist pressures decline. 3. Retrieval of much more of the heavy oil extraordinaire, Dr. Krishna Persad. (API gravity of 18 degrees or less) known to exist on land and in the Gulf of Paria CO2 utilisation can lead to the recovery of as than has been attempted before. much as 55% of the original oil in place (OOIP, 4. Commercialisation of the gas reserves according to industry jargon), whereas water identified in cross-border reservoirs flooding can retrieve up to 50%, with thermal s t r a d d l i n g t h e T r i n i d a d a n d (steam) level pegging with CO2 at 55%. Tobago/Venezuela maritime boundary line “The most successful steam project was in to the south east of Trinidad. Those four sources could not only compensate Forest Reserve which produced 12.8 million for existing declining production but add barrels from one project,” Dr. Persad recalls. significantly to output in the years to come. “That was 65% of OOIP, so steam does get a lot of oil out of the ground.” Mr. Ramnarine has described the four as constituting the “new energy economy” of But steam flood in the future “may be limited Trinidad and Tobago. A catchy description, by gas availability,” so Persad comes down it is true, involving surprisingly little risk, strongly on the side of CO2 as “the most since only the outcome of the deep water important EOR method and the one with most exploration initiative is unknown, though potential for the country.” BHPBilliton executives express surprising confidence in finding oil and gas resources CO2 injection has been tried in the South in the deep water (1,000 metres plus). Trinidad oil belt before, Persad concedes.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

“Such projects were first implemented in the early 1970’s,” he recalls. “In fact, this country was an early adopter of CO2/EOR, beginning in Forest Reserve in 1974 because of the availability of a large source of almost pure CO2 at Point Lisas. Five pilot projects were implemented and deemed technical successes but were discontinued due to the lack of a CO2 transmission line.” This is where MEEA is coming to the rescue. It has given a grant to the University of Trinidad and Tobago (UTT) to research the application of CO2 from Point Lisas in EOR projects. The UTT researchers will, no doubt, rely heavily on Persad for guidance in formulating their recommendations to MEEA. As for heavy oil recovery, steam has been the agent used so far and six projects are still struggling along in Petrotrin’s fields but they only deliver around 5,400 b/d, a modest proportion of the country’s total crude production. Persad thinks steam injection has “limited” potential for future heavy oil recovery since “the best candidates are already being flooded and there is gas availability to consider.” So in the case of heavy oil, too, Persad declares CO2 to be the best option, as it is with the light and medium gravity “left-behind” crude. The prize in both cases is enormous. Persad has estimated that well over 2 billion barrels of oil remain unexploited in conventional reservoirs that have ceased delivering or are producing much too little to be economic. As far as heavy oil is concerned, minister Ramnarine has himself acknowledged that “we simply have too much heavy oil to ignore.”

Energy Update He quotes a paper prepared by Professor Richard Dawe (who established the geosciences department at the University of the West Indies – UWI), Wayne Bertrand and Waffie Hosein which estimates that “heavy oil in Trinidad is anywhere from 2 to 7 billion barrels on land and in Trinmar in the Gulf of Paria.”

Presumably taking left behind oil and heavy oil together, Persad reckons “Trinidad and Tobago can produce up to 3 billion barrels of additional oil through CO2/EOR, with oil so produced having a smaller carbon footprint than natural gas.”

should. The fact is, the cross-border gas, even in the Manatee discovery on the Trinidad and Tobago side alone (2.69 tcf), is too valuable to our continuing gas-based heavy industrialisation thrust, just to be left lying under the seabed.

In the process “one trillion cubic feet or more of CO2 will be sequestered, potentially “We have to seriously address this,” the transforming our country from one of the minister insists. highest emitters of CO2 per capita to one of the lowest.” It is absolutely clear from the above that it is a crying shame that the country's current What does the government need to do to help crude oil production was struggling along at these admirable goals become achievable? an average of only 66,902 b/d in May, not including condensate, which would take the Persad's suggestions include “changing the figure to 78,275 b/d. rules requiring oil companies to abandon wells on depletion to requiring them to prepare their Persad has no doubt that they key to reversing fields for CO2/EOR and sequestration, provide this dismal situation is CO2 injection. tax credits to companies capturing and purifying CO2 and provide tax credits to It is available in abundant quantities, for one companies building CO2 transmission and thing. Both as a by-product of ammonia distribution systems.” manufacture at Point Lisas – 330 million cubic feet daily (mmcfd) – and as flue gas As for the private sector, he recommends (CO2 mixed with nitrogen) from all other “collection systems for all ammonia and other manufacturing operations and electricity companies that emit virtually pure CO2, generation – over 2 billion cubic feet daily collection and CO2 extraction systems for all (bncfd). companies that emit CO2 in flue gas and collection, separation and re-compression All that not only puts us second in the world systems which will ensure re-injection of all in greenhouse gas (GHG) emissions per capita produced CO2 (about 55% of CO2 injected but it also represents a huge resource that is is produced with the oil).” just vented to the atmosphere rather than being applied to a good purpose, such as As for the fourth component in the “new EOR. energy economy,” cross-border gas production, especially in the most advanced pair (Manatee Trinidad and Tobago must do its part, in block 6D in Trinidad and Tobago waters however small, in ameliorating the global and Loran in block 2 in Venezuela), this needs warming principally caused by GHG to be speeded up if it is ever to happen before emissions and capturing the CO2 and injecting the end of this decade. it into oil reservoirs underground (known as “sequestering”) would greatly assist in that Ramnarine has said that he expects aim, while simultaneously, as Persad stresses, commercialisation to begin “in the next 5 “improve oil recovery.” years” (i.e in 2020) but he should make an effort to shorten that time frame, (were he That's two benefits for the price of one, which returned as minister of energy after the makes eminent sense to all of us. September 7 general election) or his successor

Add in the reserves in Loran on the Venezuelan side (7.3 tcf) and you are looking at a huge unutilised resource than is crying out for development. Of course, as most analysts are aware, Venezuela will have great difficulty in figuring out how to dispose of its gas profitably, since there is nothing they can do with it out in the Atlantic where it resides. The answer? Let at least the first tranche of extracted Loran gas be sent across the border to Trinidad and Tobago, where the sterling efforts of Dr. Vernon Paltoo's National Energy (NE) company will ensure that there is an industry ready to make use of it. Or it could be employed in any future expansion of the liquefied natural gas (LNG) industry at Point Fortin. Venezuela has, over the years, preferred to concentrate on its oil production and has neglected the monetisation of its gas resources. That country has nothing like the gas-based heavy industrial estate at Point Lisas or any LNG trains, a la Atlantic, in Point Fortin. So Venezuela, putting that tiresome Latin pride aside for the moment, should be working out a method of gas disposal even as the development plan for Manatee/Loran is being drawn up. If cross-border gas production is to be “a significant part of Trinidad and Tobago's energy future,” as Ramnarine has said to me in the past, then the best place to start is obviously Manatee/Loran and the commercialisation of some Venezuelan gas on the Trinidad and Tobago mainland.

Contact • Vol.15 No.3 2015

Energy Update

Energy Statistics In this THIRD quarter issue of CONTACT for 2015, we continue our evaluation of the current statistical data arising from Trinidad and Tobago’s prosperous energy sector. We place special emphasis on crude oil, and natural gas production under both time-series and crosssectional circumstances. Table E.1 – Crude Oil Production by Companies for April to June 2014 and april to June 2015 (Barrels per day) Company

April

May

June

April

May

June

2014

2015

679

552

291

557

807

742

11,248

11,364

11,699

13,175

13,234

9,408

10,010

9,284

10,911

9,130

23,364

23,410

22,375

21,566

22,272

21,250

PCS NITROGEN

BG REPSOL BPTT TRINMAR

Table E.4 - Ammonia Production for April to June 2014 and April to June 2015 (Tonnes)

TEPGL

Company

April

May

June

April

May

2014

2015

June 2015

YARA

15,208

19,311

21,004

22,798

10,294

22,017

13,543

TRINGEN 1

34,118

31,343

23,532

30,960

29,662

30,979

12,425

TRINGEN 2

44,824

44,157

41,986

41,958

32,441

37,264

167,858 186,466 1

67,473

161,132 160,413

146,511

851

939

998

1,013

985

869

POINT LISAS NITROGEN

14,264

52,129

45,152

54,752

54,954

30,336

EOG

1,864

1,316

1,491

1,214

1,082

1,230

CNC

43,833

48,382

49,749

38,507

21,553

43,292

BHP

8,862

8,555

8,826

8,023

7,915

7,684

NITROGEN 2000

48,140

43,992

46,047

55,325

55,676

49,542

364

368

364

406

373

996

2,243

843

14,764

6,942

15,520

2,565

13,102

12,982

12,861

12,769

12,720

12,724

412,374 380,513

362,506

PRIMERA PETROTRIN TEPL BGCB NHETT NMHERL

554

564

642

399

411

461

1,046

931

1,051

840

790

696

AUM-NH3 TOTAL

Source: Ministry of Energy and Energy Industries, Vol. 51 No.12 & Vol. 52 No.7

Table E.5 - Ammonia Export for April to June 2014 and April to June 2015 (Tonnes)

103

109

124

110

PETROTRIN (FO)

756

644

882

939

765

887

PETROTRIN (LO)

6,379

6,689

6,912

6,214

5,496

6,058

PETROTRIN (IPSC)

1,192

1,288

1,392

2,179

1,730

1,842

284

270

242

313

280

293

LAND SUBTOTAL

23,009

23,092

23,692

23,521

22,071

22,743

MARINE SUBTOTAL

57,115

66,979

58,557

57,191

56,115

58,495

TOTAL

80,125

80,071

82,248

80,712

78,186

81,238

PCS NITROGEN

BOLT MORA

Source: Ministry of Energy and Energy Industries, Vol. 51 No.12 & Vol. 52 No.7

Table E.2 – Natural Gas Production by Company for April to June and April to June 2015 (mmscf/d)

Company

April

May

June

April

May

2014

2015

13,817

18,068

19,439

24,688

24,710

TRINGEN 1

27,357

24,819

14,936

24,718

37,227

TRINGEN 2

71,610

22,172

64,353

33,421

33,394

30,402

133,450

190,357

134,252

163,588

136,519

85,340

YARA

BPTT

April

May

June

April

May

June

2014

2015

2,168

2,071

2,030

1,871

1,866

1,856

TRINMAR PETROTRIN

EOG

566

553

559

541

554

557

797

901

888

791

950

941

BHP

394

401

391

387

393

401

REPSOL TOTAL

3,979

3,977

3,912

3,642

3,813

3,805

Source: Ministry of Energy and Energy Industries, Vol. 51 No12. & Vol 52 No.7 Figures in red are preliminary

Table E.3 – Natural Gas Utilization by Sector for April to June 2014 and April yo June 2015 (mmscf/d) Sector

April

May

June

April

May

June

2014

2015

29,054

37,512

50,523

33,008

48,403

48,622

CNC

52,762

42,429

13,201

36,738

56,143

37,241

NITROGEN 2000

49,150

31,569

10,116

28,802

63,157

46,143

349,843

351,396

315,332

329,932

387,022

309,686

AUM-NH3

Source: Ministry of Energy and Energy Industries, Vol. 51 No.12 & Vol. 52 No.7

Table E.6 - Methanol Production for March to May 2013 and March to May 2014 (Tonnes) Company TTMC I

April

May

June

April

May

2014

2015

June 2015

33,426

34,365

20,469

28,449

29,198

15,869

CMC

43,079

44,698

42,392

42,851

42,083

39,459

TTMC II

39,863

43,161

32,308

38,816

36,041

34,297

MIV

46,090

45,016

45,795

46,650

44,426

42,176

TITAN

72,039

64,439

67,070

68,168

57,962

57,219

ATLAS

87,367

138,184

77,947

118,304

132,586

123,284

M5000

145,442

131,003

149,460

7,2961

153,400

143,865

TOTAL

467,306

500,896

435,442

416,199

495,696

456,170

Source: Ministry of Energy and Energy Industries, Vol. 51 No.12 Vol. 52 No.7

Table E.7 - Methanol Exports for March to May 2013 and March to May 2014 (Tonnes)

Power Generation

308

303

306

288

302

301

Ammonia Manufacture

556

579

564

562

520

542

Methanol Manufacture

549

559

505

508

566

538

TTMC I

Refinery

June

POINT LISAS NITROGEN

TOTAL Company

370,488 426,623 409,707

Company

April

May

June

April

May

2014

2015

June 2015

35,135

34,449

26,697

7,772

37,333

139,345

117,655

172,638

89,135

171,752

167,407

51,465

14,460

36,224

19,765

22,219

2,003

102

104

CMC

Cement Manufacture

TTMC II

Ammonia Derivatives

MIV

Gas Processing

TITAN

94,362

42,952

96,345

58,652

31,985

30,145 91,665

Iron & Steel Manufacture

ATLAS

117,358

135,091

72,365

87,135

142,460

Liquified Natural Gas (LNG)

2,024

2,021

2,059

1,864

1,972

1,958

M5000

104,126

104,363

73,428

67,578

84,444

87,522

TOTAL

3,672

3,694

3,647

3,421

3,601

3,574

TOTAL

541,792

449,020

451,000

348,962

460,632

377,056

Small Consumers

Source: Ministry of Energy and Energy Industries, Vol. 51 No. 12 & Vol. 52 No.7 *Figures in red are preliminary

Source: Ministry of Energy and Energy Industries, Vol. 51 No.12 & Vol. 52 No.7

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Energy Update

Energy Statistics Chart E.1 - Crude Oil Production by Company (barrels per day)

Chart E.6 Methanol Production (Tonnes)

Chart E.2 Natural Gas Production by Company (mmscf/d)

Chart E.7 Methanol Exports (Tonnes)

Chart E.3 Natural Gas Utilisation by Sector (mmscf/d)

Chart E.8 (a) Urea Production (Tonnes)

Chart E.5 Ammonia Export (Tonnes)

Chart E.9 Urea Exports (Tonnes)

Trinidad and Tobago Chamber of Industry and Commerce â&#x20AC;˘ www.chamber.org.tt

ACCA

Sustainability and the accountant By Brenda Lee Tang, head of ACCA Caribbean

n a challenging and increasingly complex business climate, the role of the accountant has evolved from its traditional function in cost accounting, cash management or simple budgeting to a wider scope of responsibilities in supporting business strategy.

business, in public practice, or the public sector, have an important role to play in making organisations more accountable in the pursuit of sustainable development. At a global and national level, new metrics and measurements are needed to look beyond economic output to account for non-traditional measures such as human well-being and natural capital. Accountants will need to develop methodologies to address these factors, since their effective management is critical to the health of the planet, and society as well as to individual businesses.

This wider scope of planning and strategy could therefore be said to be the firm foundations on which the discipline of management accountancy is built. Ensuring effective control over the business’s assets and investments to create a sustainable value for business, while managing its risks and compliance, is a key component of the accountant’s role. Organisations tend to communicate their sustainability activities through sustainability reports. These specific skills – from preparing financial Presently, over 3,000 companies worldwide, including information for internal management to budget planning over two thirds of the Fortune Global 5000, issue and production - often mean that the accountant has annual reports on sustainability and corporate a unique view of the organisation – including its responsibility. While these are external facing opportunities and its risks. In their role of evaluating documents, the accountant would have a role in potential business and investment opportunities, the their production. ACCA’s view is that accountants accountant needs their radar tuned into future trends, need to be involved in sustainability issues, and demands and risks. They are operating in a world of more importantly understand the implications and change. the impacts. In this context of change, I am often asked what the future holds for the profession, and more specifically for the accountant. If accounting is essentially about making and executing professional judgment and decisions to help a business grow in a sustainable – and profitable – way, then accountants scope of knowledge and responsibility can only grow and change even more. Sustainability Matters An issue that ACCA believes is incredibly important for the profession is sustainability. The question is often asked “what does sustainability have to do with the accountant?” and my answer is a short one – “everything.” All that needs to be considered in the context of planning the current and financial strategy and management of a business should be considered to be within the remit of accountant. And sustainability fits into this context.

Managing measures Companies that aim to reduce their sustainability impacts can only manage what they measure. So it is vital that organisations collate and interpret reliable data, so that performance can be monitored, and targets for continuous improvement set. This needs to be communicated internally and externally. This is where accountants can add value. ACCA believes that accountants, with their significant experience in the design of reporting systems, can ensure this management information is robust, comparable and measurable over time. By doing this, accountants can help companies to assess and manage their impacts better.

The profession – including accountants - need to be prepared for the changes ahead. Training and development are vital – not just to qualify as a finance professional, but also to keep skills and knowledge up to date. This is why ethics, social and environmental issues are at the heart of the ACCA Qualification. The inclusion of sustainability and environmental issues throughout this Qualification essential to future proof the profession. It is of vital importance for future generations of finance professionals. Continuous professional development (CPD) is also part of this mix, and like many professionals, ACCA members are required to complete CPD throughout their careers. ACCA’s approach to CPD is designed to help them maintain and develop the knowledge and skills they need to succeed in today’s dynamic and demanding business environment. So the profession has to be trained, skilled and developed to be ready for the changes that are coming, but are we really prepared for the green economy? A number of governments have developed policies, regulations and budgets to address matters such as climate change and water scarcity. For example, the Chinese government has set ambitious targets for reduction of the carbon and water intensity of its economic activity, while the South Korean government has spent US$37bn on environmental and low-carbon projects since 2008, representing 81% of its post-financial-crisis economic stimulus package. In 2012, ACCA held a series of roundtables to see if the profession and others were ready for the green economy –and the main finding was that the green economy can foster economic growth and expansion. Many saw the green economy as a business opportunity, but that it also represented challenges ahead. This report’s conclusion demonstrated that the shift to a green economy cannot be achieved by any one party alone, but requires actors from all areas of society to work in a collaborative manner. This means that the accountancy profession has a big part to play on this stage.

Accountants are closely involved in corporate reporting, either as report preparers or as the providers of assurance and while sustainability reporting is an external facing activity, underpinned by assurance, the accountant could and should have Sustainability in relation to business planning means a part to play in preparing and collating this ACCA believes that the next few years will be critical measuring environmental impacts and valuing information. for the shift to a green economy. The scale of the environmental assets – these are things that the accountant can and should do. There should be no silo working when it comes to challenge is enormous and will require a change in sustainability. The talents of all accountancy the way progress and value are defined. A critical ACCA is soon to publish a policy paper called specialisms – such as assurance, audit, tax – should issue is how to ensure that the policies and statements Sustainability Matters, setting out ACCA’s key policies be brought into the mix as sustainability crosses all made by both governments and corporates translate and statements around a series of six business and disciplines. Of course the accountant’s role is into actions. This is not only important for those living sustainability topics - sustainability reporting, integrated traditionally focused on financial performance but, in the region, but for people all over the world. It is reporting, the assurance of non-financial information, owing to stakeholder demand, companies a massive responsibility, but one to which I believe climate change, natural capital and the green economy. increasingly need to disclose their environmental the profession – whether tax specialist, financial We believe that accountants, whether working in and social policies and performance as well. accountant or CSR specialist – can rise.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

Telecommunications Authority of Trinidad and Tobago

Transforming Tomorrow Facilitating Investment Through Strong Telecommunications and Broadcasting Sectors “It’s hard to imagine what tomorrow will look like in the telecommunications and broadcasting industry with the rapid changes happening daily!” Mr. Cris Seecheran, Chief Executive Officer Telecommunications Authority of Trinidad and Tobago

n a recent interview, Mr. Cris Seecheran took a broad perspective of the local telecommunications and broadcasting sectors and their impact on investment in the Information and Communication Technology (ICT) industry.

that TATT has facilitated the build-out of a strong infrastructure backbone that is ideal for investment along with robust broadband infrastructure. A revised legislative agenda to match today’s demands for Economic Partnership Agreement (EPA) compliance, along with critical consumer quality of service regulations and rules for interconnection offers that will rule out anticompetitive practices amongst providers, are also in place.

User demand for access to information is expanding exponentially. The world has become mobile first and the Internet of things and cloud computing are becoming the norm. Conversation now revolves around social networking, big data and Green ICT; digital trade and ICT supply chains. “TATT, through its authorisation framework and relevant regulatory procedures, ultimately assumes According to Mr. Seecheran “we are moving to a responsibility for determining the number of players world where communication is now almost limitless. in the sectors, always seeking to encourage The combination of devices and services people hold investment and promote competition,” he noted. in the palms of their hands for generating and consuming data creates tremendous opportunities Seecheran stressed that convergent technology, for investors.” greater competitive pressure and growing consumer expectations in the telecommunications and Regarding the local ICT industry Seecheran said, broadcasting sectors are so ever present that “Trinidad and Tobago’s telecommunications and telecommunications regulators and service broadcasting sectors are ripe for investment. Investors providers must constantly be prepared for the next expect us to provide the foundation upon which they change. can successfully deliver maximum quality of goods and services to consumers.” He noted, “the design of TATT’s regulatory framework covers critical elements which should “Telecommunications regulators like TATT”, he noted, be included in any effective regulatory framework. must therefore strike the right balance between being Transparent decision-making; accountability to our continuously focused on “what will tomorrow’s stakeholders coupled with the increased adoption technology sector look like and how to regulate to of high level market analysis in our market reports; ensure that their countries are ready to meet consumer consumer protection; dispute resolution and demand and investor needs”. enforcement powers are among the areas covered.

environment for development of the sectors and increased consumer welfare.” Cris Seecheran added that recently passed Universal Service Regulation will facilitate the bridging of the digital divide for nationals, irrespective of their varying abilities and geographic locations. He stated “Other initiatives, like the Local Internet Exchange Point (IXP) has resulted in the reduction of the average per-bit delivery cost of local Internet service and reduced latency for local traffic. Internet users also enjoy general improvement in download speeds for locally hosted content such as online video, radio, games and other applications as a result of the IXP. Number Portability, fair and efficient management of spectrum and numbering resources; the transition to IPV6 and Digital Terrestrial Television are all expected to have significant impact on the way business is conducted in Trinidad and Tobago and inspire investor confidence when they come on stream.”

Using a light touch approach, TATT has engaged in substantial public education on topics like cyber security; building entrepreneurial capacity among the nation’s young persons with its Youth and Entrepreneurship workshop; and encouraging innovation in small and micro enterprises. Seecheran noted that TATT’s quarterly ICT Open Fora allows the organization, providers and consumers to engage in dialogue on current affairs in the industry. Knowledgeable users, Seecheran Facilitating investment Consideration and proper implementation of these stressed, drive demand and create new opportunities Investors coming to Trinidad and Tobago will find features are key elements for creating an enabling for investment.

Trinidad and Tobago Chamber of Industry and Commerce • www.chamber.org.tt

DRC

Transforming Communities through Conflict Management & Mediation! Community & Youth Specialist, Ryssa Brathwaite (second from left, front row), DRC Executive Director Beverly Britain (far right, front) and Participants at the Graduation Ceremony of the CSP’s Conflict Management & Mediation Training

A Citizen Security Programme Success Story

he Dispute Resolution Centre (DRC) has found a kindred spirit in the Citizen Security Programme (CSP). The CSP, which operates under the auspices of the Ministry of National Security, is charged with the reduction of crime and violence in selected “high needs” communities. In a similar context, the DRC’s mandate involves working with the business and non-business communities to find peaceful means of resolving disputes through conflict resolution, mediation and other ADR techniques.

more appropriate for certain types of disputes; (4) the realisation that mediation has a real potential for rebuilding communities; and (5) a sense that mediation may be more cost effective and takes less time than traditional methods. Indeed, it is now widely accepted that the integration of community based mediation programmes has a preventative and transformative impact on communities with long ranging social justice benefits, particularly when partnered with Community Policing initiatives.

Mediation may be described as a third party assisted negotiation. Community or neighbour mediation often include family or relationships disputes, boundary or property disputes, issues with noise, parking, untidiness, pets, abusive behaviour and threats. Left unresolved or poorly managed, there is a real tendency that relatively minor disputes may escalate to large conflicts involving violent crimes.

The DRC’s Community Mediation and Peace Promotion Programme has been designed for persons who reside or work in communities with elevated incidences of crime and violence. The value of this programme is its reliance on citizens, from all walks of life, and from within the target communities, who agree to volunteer their time and services to mediate community-related disputes of which they are familiar and, more importantly, have earned the trust of their fellow residents.

Researcher Marian Liebmann (1988) lists five reasons to support and fund community or neighbourhood mediation: (1) the failure of legal remedies to deal with neighbourhood conflict; (2) a desire to provide an alternative to existing methods of resolving disputes; (3) a belief that mediation is

The Community Mediation and Peace Promotion Programme is a joint initiative of the CSP and the DRC. Funded through a loan from the IDB, the project was a first of its kind in Trinidad and Tobago. The overriding objective of the programme: to

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develop a roster of community-based residents to act as first responder mediators and peace keepers within their respective communities. Compared to community mediation in which the parties go to the Mediation Centres, with this approach, the mediator goes to the dispute and attempts, through dialogue to calm the parties and diffuse the situation. Mediators work under the premise that people are

Community & Youth Specialist, Ryssa Brathwaite (left) presents a Certificate of Achievement to graduate Genevieve Bernard.

DRC capable of finding their own solutions. Their role is to help people listen to one another so they can clarify their issues, express their needs and identify what is really important to them. When this happens, people in conflict begin to work together and find solutions that will work for them. Projects such as these positively impact the country on a macro level. There is the potential for society to become more peaceful with greater access to social justice. It mitigates costs associated with law and order and builds social capital. On the micro/individual level, the approach adopted by the DRC is founded on transformative and transferable life skills. It develops the confidence and selfesteem of the beneficiary group; it encourages inter and intra community team support and peacekeeping through the establishment of a network of mediators; and it comprises a sustainability component to ensure the programmeâ&#x20AC;&#x2122;s survivability and growth even after the project has expired. Further, with these newfound skills, residents become more marketable and may enjoy income generating opportunities as mediators. There is also the potential that the programme may trigger entrepreneurship amongst some of the participants as they continue to work as cohesive teams. What started as an initiative with 24 individuals from five CSP partner communities has evolved into a strong, cohesive and complementary team excited to serve as community mediators and peace promoters. The residents have been trained in a combination of skills and techniques to effectively diffuse, manage and prevent conflict amongst neighbours, at work, at schools, at recreation grounds and at places of worship. Indeed, the skills are intended to be used in every facet of community life. With this weighty responsibility, these first responder mediators are encouraged to temper their responsibilities with their safety. The DRC encourages co-mediation so mediators may

continue to network and learn from each other, to refine their skills and to create safety nets when required. Moreover, the DRC recommends training in conflict resolution and mediation for police officers to strengthen the first responder teams that are called upon to address conflicts in these communities. Of note, mediation is now being successfully used in Jamaica, the United Kingdom and other jurisdictions to address gangs and territorialism, hate crimes and other violent crimes.

positively contagious learning experience. While sharing their stories, they laughed, they cried, they learnt. They read, they roll-played, they learnt. They listened, they encouraged, they learnt. The DRC especially thanks the CSP for seeing the value of this project and making it a reality. We acknowledge, in particular, Mr. Gregory SloaneSeale and Ms. Ryssa Brathwaite and the Community Action Officers with whom who we worked closely, as well as members of the Procurement and Evaluation teams.

During this project, the DRC worked with 5 CSP partner communities including St. Barbâ&#x20AC;&#x2122;s, Beetham Gardens, Mon Repos, Never Dirty, Gonzales, Dibe, Belle Vue and Dundonald Hill. Residents were trained in emotional intelligence, conflict resolution, mediation and peripheral fields. The programme included practical mediation sessions, coaching and debriefing sessions, live mediations and a formal evaluation process. Of the 24 residents that were trained, over 80% will move forward to apply for certification by the Mediation Board of Trinidad and Tobago.

We recognise our team of trainers and coaches led by Mrs. Ann Diaz. Mrs. Diaz is a skilled and competent teacher, mediator coach, counsellor, advisor and for many now, a friend. We also recognise the families and friends of the participants. They adjusted their lives and their schedules so that the participants could wholeheartedly participate in this programme. On 27th July 2015, the CSP and DRC hosted a joint Graduation Ceremony at the T&T Chamber of Industry and Commerce. This has been another success story for the CSP. It was a happy celebration with family and friends in The programme incorporated a sustainability attendance to recognise the incredible achievement component in which the participants willingly signed of the team. Both the CSP and DRC hold in high a commitment letter to participate as volunteer regard the commitment of these community-based mediators and peace promoters for a minimum of mediators to be part of the national solution. Thank one year, following the completion of the project. you for allowing the Dispute Resolution Centre to To support their efforts, the DRC also designed a be part of your journey. We are proud of you and simple dispute resolution system with appropriate your achievement. In our eyes you are all winners!! forms and agreements for use by the participants. Moreover, once the pre-requisites are met, there is the potential for the mediators to be incorporated into the community mediation services or other state or governmental agencies. The Community Mediation and Peace Promotion Programme was voluntary, comprised 144 contact hours, and was rolled-out over a one year period. The participants steadfastly stayed the course, willingly dedicating their Saturdays to develop their skills as community mediators. Residents showed up prepared and ready to participate with energy Lead Facilitator Ann Diaz (third from left) with the and vigour. It was emotional, meaningful and a participants during a group presentation Contact â&#x20AC;˘ Vol.15 No.3 2015

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