At a Glance

• Partners: The Philippines Department of Environment and Natural Resources (DENR), the Department of Energy (DOE), San Miguel Corporation, and Metro Pacific Investments
• Investment type: Public-private MOU for coordinated strategy and private resources and investment
• Key business benefit: Supports Aboitiz’s climate, nature and SDG strategy and protects local economy around Aboitiz’s operation; reduces operational and reputational risk in a region of direct commercial exposure
• Key outcomes: MOU signed in May 2024 establishing public-private coordination to advance the stewardship of the Verde Island Passage; commitments include marine science research capacity, technical working structure for implementation, and low-carbon transition planning.

The Opportunity

The Verde Island Passage (VIP) is one of the world's most important marine biodiversity corridors. Located between Batangas and Mindoro in the Philippines, it spans around 1.14 million hectares of coral reef, mangrove and seagrass habitats and is home to more than 1,700 marine species, including 60% of the world's shore fish species and more than 300 coral species. The passage supports fisheries, ecotourism, coastal protection, while also serving as a major commercial shipping channel and an area of strategic importance for industry and energy. Millions of people depend on the health of this ecosystem for livelihoods, food security and local economic activity.

Given the importance of this biodiversity as well as the growing demand for resources from the Verde Island Passage, the Philippines Department of Environment and Natural Resources (DENR), the Department of Energy (DOE) and major private sector groups - including Aboitiz Equity Ventures, San Miguel Corporation and Metro Pacific Investments – looked to align public and private action around the protection of the VIP.

The Approach

To align public and private action, the Philippines DENR, DOE, Aboitiz Equity Ventures, San Miguel Corporation and Metro Pacific Investments signed on MOU to create a shared strategy for activities in the VIP. The partnership responds to a clear governance challenge: many public, private and local actors are already active in the Verde Island Passage. The agreement seeks to advance a whole-of-government and whole-of-society approach to conservation, biodiversity protection and responsible economic development in the corridor.

Under the MOU, the participating companies and government agencies commit to support conservation and stewardship of the VIP's marine and coastal resources. Priorities include strengthening marine science and research capacity, supporting biodiversity research and development programmes, advancing habitat restoration and sustainable resource use, and aligning low-carbon transition objectives with environmental protection. The initiative also creates space for a technical working structure that can define roles, coordinate implementation and translate high-level commitments into concrete action.

A central element of the model is the recognition that conservation and economic activity are interdependent. Mangroves, seagrasses and coral reefs provide natural protection, nursery grounds for fisheries and biodiversity value that underpin local livelihoods and tourism. Protecting these ecosystems is therefore not only an environmental objective, but a way to safeguard the economic base of communities and businesses operating in and around the passage.

Value Created

For Aboitiz, the MOU aligns its climate, nature and SDG strategy with the health of the coastal economy it operates within. The Verde Island Passage illustrates how corporate capital can support a more regenerative ocean economy when it is aligned with public policy and ecological priorities. Mangrove-positive and biodiversity-positive action can reduce operational and reputational risk, and create opportunities for credible nature-related investment.

For biodiversity and climate outcomes, the MOU creates commitments for science capacity, habitat restoration, sustainable resource use and low-carbon transition planning in a key biodiversity corridor.



Why It Matters / Key Takeaways

This case highlights the benefit of coordination across multiple conglomerates and government where industry exploration and biodiversity overlap. The partnership creates a public-private framework to protect the Verde Island Passage, align conservation with low-carbon transition planning, and mobilize corporate resources for biodiversity in a highly diverse marine corridor and is a model for such coordination in other areas.

Relevant global targets

• Global Biodiversity Framework Targets 2 (restoration), 11 (ecosystem services), 14 and 19 (mainstreaming and resource mobilisation), and 21 (knowledge and awareness)

References

1. Investing in Mangroves: The Corporate Playbook - World Economic Forum

2. Loyzaga urges multisectoral effort on Verde Island Passage - Philippine Daily Inquirer

3. Metro Pacific Investments Corporation joins forces in environmental MOU to safeguard the Verde Island Passage - MPIC