Auditing in Microfinance operation

1. THE PHYSICAL
Activity 2.2
ENVIRONMENT
ANALYSIS

2. Surf the net and perform the following:
01
Describe the physical or natural environment
surrounding companies located in Luzon,
Visayas and Mindanao.
1.1
Identify the programs and regulations
adopted by the European Union, United
States and ASEAN to reduce carbon dioxide
and other greenhouse gases.
1.2
Explain how different countries invest in
sustainable energy, including wind, solar and
water power, to support advocacies on
environmental sustainability.
1.2
Mini-case. Read the mini-case of Walmart de
Mexico and answer the discussion questions
comprehensively.
02
CONTENTS

3. Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
Physical or Natural
Environment includes
PHYSICAL
RESOURCES
CLIMATE
WILDLIFE

4. PHYSICAL
RESOURCES
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

5. PHYSICAL
RESOURCES
LUZON
Luzon leads the country both in
commerce (concentrated near Manila) and
in agriculture (rice, corn, coconuts,
sugarcane, mangoes, bananas). A central
plain stretching 100 miles (160 km) north
of Manila is the major grain-producing
region. Farther north are the spectacular
rice terraces of the Ifugao mountaineers.
There are extensive coconut plantations
on the Bondoc and Bicol peninsulas.
Forest areas in Luzon also yield excellent
hardwoods.
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

6. PHYSICAL
RESOURCES
VISAYAS
High mountains characterize most
of the Visayan Islands with the exception
of Samar and Masbate, which are
exceedingly hilly. Panay has extensive
eastern plains where sugarcane and rice
are farmed. Negros has large western
plains on which sugarcane is grown. Corn
(maize), coconuts, bananas, tobacco,
abaca, and root crops also are widely
grown, and fishing is also important in the
Visayas.
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

7. MINDANAO
Rugged, faulted mountains and
volcanoes occur in many areas. Because
of its large expanses of undeveloped fertile
land, Mindanao has been considered the
country’s “pioneer frontier.” It did not
experience substantial population increase
until migration was promoted, particularly
in the mid-20th century. The chief crops
are corn (maize), rice, abaca, bananas,
pineapples, mangoes, and coconuts.
Cotton, ramie (a fibre plant), coffee, and
cacao are also grown.
PHYSICAL
RESOURCES
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

8. Most of the country’s metallic minerals, including
gold, iron ore, lead, zinc, chromite, and copper, are
drawn from major deposits on the islands of Luzon and
Mindanao. Smaller deposits of silver, nickel, mercury,
molybdenum, cadmium, and manganese occur in several
other locations. The Visayas are the principal source of
nonmetallic minerals, including limestone for cement,
marble, asphalt, salt, sulfur, asbestos, guano, gypsum,
phosphate, and silica. Petroleum and natural gas are
extracted from fields off the northwest coast of Palawan.
Copper has remained the country’s primary mineral,
although changing world market demands and
investment incentives have rendered its production
somewhat volatile.
PHYSICAL
RESOURCES
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

9. WILDLIFE
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1

10. WILDLIFE
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
LUZON
Luzon is the largest island, containing
a diverse array of environments and several
associated islands. Relatively easy to navigate,
finding the popular species to see usually
takes a day or two of travel. Species unique to
Luzon include the Luzon bleeding-heart and
the Luzon hornbill. Other species found in
Luzon include the Flame-breasted Fruit Dove,
Penelopides, and Gallicolumba, to name a few.

11. WILDLIFE
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
VISAYAS
The Visayas consist of the majority of
the Philippine Islands but are not long to travel
as many of the islands are small. Due to rise in
human population, many native species are
difficult to find or extinct on these islands.
While hopping the Visayas, keep an eye out
for Tarsiers, Negros Scops owls, Visayas
Tarictic Hornbills, Yellow-faced Flamebacks,
and Flame-templed Babblers.

12. WILDLIFE
Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
MINDANAO
Mindanao is generally avoided due to
instability within the country. However, it is one
of the last homes of the Philippine Eagle, the
national bird and an endemic species. Travel is
still possible but takes careful organization and
planning in advance. The Apo sunbird,
Southern Silvery Kingfisher, Mindanao Blue
Fantail, and the Red-eared Parrotfinch are
species to look for in Mindanao.

13. Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
Diverse topography and climate characterize the
physical environment surrounding companies in our country.
The climatic conditions and degree of weather disturbances
differ among the provinces because of their varied
topography and geographic location. The provinces in
northeastern Luzon and the Bicol Region are generally wet
and more vulnerable to typhoon than the rest of the country.
The Visayan regions have generally more rainy days than
Luzon and Mindanao. Mindanao, on the other hand, is
almost free from typhoon which makes agriculture a very
important industry on that island.
CLIMATE

14. Describe the physical or natural environment surrounding
companies located in Luzon, Visayas and Mindanao.
1.1
The map shows the four climatic zones on the
Islands, where; 1. Red zone: two distinct seasons. The
climate is dry from November to April, wet from may to
October. 2. Blue zone: A large part of the Eastern seaboard-
including Eastern Mindanao, Siargao, southern Leyte, Samar,
Eastern and Southeast Luzon – is rainy from November to
January and pretty dry for the rest of the year. 3. Yellow
zone: relatively dry climate from November to April. Wet from
may to October (Boracay island, Cebu) 4. Green zone:
rainfall more or less evenly distributed throughout the year.
CLIMATE

15. 1.2
Identify the programs and regulations adopted by the
European Union, United States and ASEAN to reduce carbon
dioxide and other greenhouse gases.

16. 1.2
Identify the programs and regulations adopted by the
European Union, United States and ASEAN to reduce carbon
dioxide and other greenhouse gases.
European environment policy rests on the principles of
precaution, prevention and rectifying pollution at source, and on
the ‘polluter pays’ principle. In June 2021, the EU adopted a
European Climate Law, establishing the aim of reaching net
zero greenhouse gas emissions (GHG) in the EU by 2050. The
law sets an intermediate target of reducing GHG by at least 55%
by 2030 compared to 1990 levels. The ‘Fit for 55’ package is a
set of policy proposals by the European Commission to achieve
this 55% reduction target.
EUROPEAN
UNION

17. 1.2
Identify the programs and regulations adopted by the
European Union, United States and ASEAN to reduce carbon
dioxide and other greenhouse gases.
Many European countries have adopted national
programs aimed at reducing emissions which includes:
• increased use of renewable energy (wind, solar, biomass) and
combined heat and power installations;
• improved energy efficiency in buildings, industry, household
appliances;
• reduction of CO2 emissions from new passenger cars;
• abatement measures in the manufacturing industry;
• measures to reduce emissions from landfills.
EUROPEAN
UNION

18. 1.2
Identify the programs and regulations adopted by the
European Union, United States and ASEAN to reduce carbon
dioxide and other greenhouse gases.
UNITED
STATES
The United States Congress has enacted
federal statutes intended to address pollution
control and remediation, including the Clean Air Act
(air pollution), the Clean Water Act (water pollution),
and the Comprehensive Environmental Response,
Compensation, and Liability Act (CERCLA, or
Superfund) contaminated site cleanup. There are
also federal laws governing natural resources use
and biodiversity which are strongly influenced by
environmental principles, including the Endangered
Species Act, National Forest Management Act, and
Coastal Zone Management Act.

19. 1.2
Identify the programs and regulations adopted by the
European Union, United States and ASEAN to reduce carbon
dioxide and other greenhouse gases.
ASEAN
ASEAN countries continuously makes
collective efforts in environmental protection through
policy dialogue and harmonization, research,
capacity building, technical assistance, scaling up
and replication of good practices across ASEAN
countries. Some flagship initiatives include the
ASEAN Heritage Parks Programme, ASEAN SDG
Frontrunner Cities Programme, and ASEAN Eco-
schools and Youth Eco-champion Award
Programmes. ASEAN also regularly develops
ASEAN State of Environment Reports and recently
developed an ASEAN State of Climate Change
Report to support evidence-based policy decision
making process in ASEAN.

20. 1.3
Explain how different countries invest in sustainable energy,
including wind, solar and water power, to support advocacies
on environmental sustainability.

21. 1.3
Explain how different countries invest in sustainable energy,
including wind, solar and water power, to support advocacies
on environmental sustainability.
Massive improvements in the
efficiency of technologies and devices have
facilitated continuing investments in
sustainable energy in different countries.
Globally, there was $226 billion of new
investment in renewable energy in 1H 2022,
an all-time high for a first half (Bloomberg
Renewable Energy Tracker, August 2022).
Accordingly, the surge was driven by
increased investment in renewable energy
projects, venture capital and private equity
funding.

22. U.S.
CHINA JAPAN
$98B $12B $5B
China continues to lead the world on solar investments
1.3
Explain how different countries invest in sustainable energy,
including wind, solar and water power, to support advocacies
on environmental sustainability.
China was the largest market yet again, investing $98 billion in the
first half, up 128% compared to the same period in 2021. The U.S secured $12
billion while Japan drew $5 billion. The first-half totals in 2022 and 2021
compare favourably to those of 2020 and 2019, when the total investment was
only $183 billion and $140 billion, respectively.

23. Mini-case. Read the mini-case of Walmart de
Mexico and answer the discussion questions
comprehensively.
02

24. Mini-case. Read the mini-case of Walmart de
Mexico and answer the discussion questions
comprehensively.
02
2.1
How can the company leverage its sterling
credit rating to get renewable energy
projects off the ground?
2.2
For the EVM wind farm, Walmart de Mexico’s equity
investment was minimal and just sufficient to meet the
requirements for Mexico’s self-supplied tariff. Should a
company take a larger equity position in furthering
energy projects rather simply serving as an off taker?
2.3
What technologies should Walmart de
Mexico employ to achieve its renewable
energy goals?
2.6
Is there a way to include suppliers into a
renewable energy program?
2.5
How could Walmart de Mexico expand the
program to other Central American
countries where it operates?
2.4
Should the company hold a portfolio of
projects or just concentrate on one
technology?

25. Mini-case. Read the mini-case of Walmart de
Mexico and answer the discussion questions
comprehensively.
02
2.1
How can the company leverage its sterling
credit rating to get renewable energy
projects off the ground?
2.2
For the EVM wind farm, Walmart de Mexico’s equity
investment was minimal and just sufficient to meet the
requirements for Mexico’s self-supplied tariff. Should a
company take a larger equity position in furthering
energy projects rather simply serving as an off taker?
2.3
What technologies should Walmart de
Mexico employ to achieve its renewable
energy goals?
2.1. Since Walmart is one of the companies that buy renewable
energy in the U.S they show that renewable energy is an integral
part of their businesses. It is also known as an enormous store
and has an affordable cost so the company took advantage of
the credit rating to get a renewable energy project off the ground.
2.2.Yes, because in the year of 2015, Walmart de Mexico have
an objective to obtain a 50% of an energy from renewable
sources which is one of the leading retailers from the area of
sustainability around the world. And also, since the company
invested from Oaxaca that would supply 18 percent of energy,
solar and hydroelectric projects, we think it would be considered
to take a large equity position in furthering energy projects.
2.3. Mexico has a renewable energy source. Hydropower,
biomass, geothermal, solar power and wind are the most
renewable energy sources in Mexico. All of these things help to
reduce the use of fossil fuels and carbon emissions. Hydrogen
can facilitate increased contribution by renewables, regulation
will push rooftop solar power, floating solar installations and new
solar PV applications.

26. Mini-case. Read the mini-case of Walmart de
Mexico and answer the discussion questions
comprehensively.
02
2.6
Is there a way to include suppliers into a
renewable energy program?
2.5
How could Walmart de Mexico expand the
program to other Central American
countries where it operates?
2.4
Should the company hold a portfolio of
projects or just concentrate on one
technology?
2.6. Yes, there is a way to include suppliers into a renewable energy program.
Since the suppliers need the capabilities of this project, which include long-term
renewable energy variability and reduced the power costs. According to company,
their suppliers will be able to buy renewable energy collectively via power
purchase agreements through its Project Gigaton initiative.
2.5. Walmart began its global expansion strategy by first venturing in the Latin
American Market that including Brazil, Argentina and Mexico. Walmart’s
commitment across Central America remains rooted in improving economic
opportunity for their associates and stakeholders, becoming a more sustainable
company and supporting their local community.
When the business is continuously expanding around the countries, we believe that
as their organizations expand, the public's awareness of the program they aim to
spread will expand as well.
2.4. Walmart de Mexico should hold a portfolio of projects than
just to concentrate on one technology. Project of portfolio
increases business value by aligning projects with an
organization’s strategic direction, making the best use of limited
resources, and building synergies between projects..

27. THANK YOU!