Founded in 1834, Ayala Corporation is one of the oldest and largest conglomerates in the Philippines with core interests in real estate, banking, telecommunications, and power. It also has portfolio investments in various industries including water, industrial technologies, infrastructure, health, and education. Additionally, Ayala has a social commitment arm, Ayala Foundation, which is focused on bettering the lives of Filipinos primarily by strengthening education, youth leadership, sustainable livelihood, and arts and culture in the country. Its headquarters are located in Manila, Philippines and it continues to grow its regional and global footprint, serving millions of customers across all market segments. Ayala has always been mindful of the societal challenges faced by the Philippines and that to be economically relevant, alignment between what the company does and what the country needs is key.
Purpose
To improve lives through resilient businesses and risk-calculated investments that have a meaningful and lasting impact on the country's economic and social landscape. The Sustainable Development Goals gave us a perfect framework to which we can align ourselves and provides us with the opportunity to further our commitment to nation-building. We took a systematic approach in determining how we can significantly contribute to the SDGs and operated under these five principles:
- That we take an Outside-in perspective, where we carefully assess the external environment and how we can relevantly contribute.
- That our executives across the group take demonstrate Bold Leadership by making a firm commitment to linking the businesses to the SDGs and communicating related efforts.
- That we put emphasis on creating Impact at Scale with a long-term view, ensuring the continuity and magnitude of the positive effects we intend to make.
- That our companies put Focus on the SDGs that are naturally related to their business.
- That we recognize that Public-Private Partnerships are essential in scaling sustainability, and this, in turn, adheres to SDG 16 and 17.
We identified three megatrends that are relevant to the Ayala Group and also pose as the biggest challenges to Filipinos today:
- Marginalization – the phenomenon where the majority of the population lacks access to basic necessities and thus affects the overall well-being of households
- Untapped Potential – refers to the challenges faced by the working class due to underemployment, unemployment, and lack of access to services and conveniences that could aid them in performing at their best at work, and
- Irresponsible Growth – highlights the unrestrained and careless development of organizations that affect the environment, thereby affecting the future of the next generations.
From these, we envisioned the Filipino of 2030 as someone with a better quality of life and is a responsible global citizen. To do so, Ayala firmly committed to three journeys:
- Access & Inclusivity Journey – where we will ensure that Filipinos have access to basic needs such as safe and clean water, health services, education, and sanitation. This prioritizes the vulnerable sector.
- Productivity & Competitiveness Journey – where we will enable the Filipino by ensuring they have the necessary infrastructures, technology, products, and services that would aid them in functioning at their best in a globally connected economy.
- Responsible Growth & Innovation Journey – where we will enhance resilience against climate hazards and manage negative impacts to the environment and communities. It comes with the aim to reduce reliance on fossil fuels and giving opportunities for more sustainable lifestyle alternatives.
Within the three journeys are our business units that advocate SDGs which naturally fall in place per journey and are directly aligned to their industry. Each company has set core and stretch targets that will be annually measured and reported until 2030. Ayala Corporation champions SDGs 8, 12, and 13. The following Ayala companies are also involved in this endeavor:
- Ayala Foundation Inc (AFI)
- AC Health
- iPeople
- Manila Water Co. (MWC)
- Bank of the Philippine Islands (BPI)
- AC Infra
- Globe Telecom
- Ayala Land Inc. (ALI)
- AC Energy
- AC Industrials
With the Ayala sustainability Blueprint, Ayala continues to create shared value and remain committed to our promise of reinventing businesses and transforming communities. All targets are slated to be fully measured until 2030 – the same time of global reckoning of the SDGs. https://sustainability.ayala.com/sustainability/ayala-sustainability-blueprint
Jaime Augusto Zobel De Ayala
We believe it is vital to state clearly to the world the set of our beliefs about Inclusive Capitalism. As such, we start with our Statement of Guiding Principles for Inclusive Capitalism. Knowing that words alone are not enough, each of us is making a series of commitments about how we will operate our institutions so that they help achieve Inclusive Capitalism. These commitments are forward-looking statements based on current goals, expectations and assumptions, which are not guarantees of future performance. For more information, please refer to our Terms of Use
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Principles of Governance
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Summary
Ayala will support anti-poverty frameworks resulting in 50% reduction of extreme poverty in AFI project areas by 2030 through Ayala Foundation.
Activities & Initiatives
Help raise the dignity and quality of life of the underprivileged.
Measures & Targets
Support anti-poverty frameworks resulting in 50% reduction of extreme poverty in AFI project areas by 2030 through Ayala Foundation.
Summary
Ayala will support full and productive employment and decent work for all and equal pay for work of equal value by ensuring employment remuneration is 10 to 20% above the industry average through Ayala Corporation.
Activities & Initiatives
Promote an inclusive workforce that supports meaningful jobs and enhances the quality of life of the workforce.
Measures & Targets
Support full and productive employment and decent work for all and equal pay for work of equal value by ensuring employment remuneration is 10 to 20% above the industry average through Ayala Corporation.
Summary
Announced on October 21, 2021, ACEN is committing to achieve net-zero greenhouse gas emissions by 2050 and will divest all thermal plants and our remaining coal plant by 2025.
Activities & Initiatives
To transition the company’s generation portfolio to 100% renewable energy by 2025.
Measures & Targets
ACEN is the listed energy company of the Ayala group.
ACEN commits to divest all thermal plants and our remaining coal plant, South Luzon Thermal Energy Corporation (SLTEC), by 2025 or earlier.
Along with the divestment plan is the use of the Energy Transition Mechanism (ETM). This strategy will enable the early retirement of SLTEC by 2040, 15 years ahead of its technical life, and transition the plant to a low carbon technology. The ETM is an innovative funding mechanism that leverages low-cost and long-term funding geared towards early coal retirement and reinvestment of proceeds to enable renewable energy. BPI Capital Corporation will be the lead arranger for the ETM for SLTEC.
ACEN will develop and implement an integration program for the redeployment and reskilling of workers. Those who couldn’t be redeployed and reskilled into the expanded organization will be given generous separation packages. ACEN will continue to provide salary continuance and financial support where possible.
ACEN will develop a tangible roadmap for reducing emissions, including all relevant Scope 3 emissions from the value chain in line with our net-zero by 2050 ambition, in the next 12 months.
Summary
Ayala will champion Universal Health Coverage in the country, touching the lives of one in five Filipinos by 2030 through AC Health.
Activities & Initiatives
Provide quality healthcare access to more Filipinos through innovative products and services.
Measures & Targets
Champion Universal Health Coverage in the country by providing the largest primary care network, expanding access to quality and affordable medicines, and improving essential hospital and specialty services, touching the lives of one in five Filipinos by 2030 through AC Health.
Summary
Increase access to a progressive and quality education to help prepare the next generation of the workforce.
Activities & Initiatives
Increase access to a progressive and quality education to help prepare the next generation of the workforce.
Measures & Targets
Help ensure equal access for all women and men for 85% (1,258,095) of the nonworking population (aged 15 to 24) to affordable and quality secondary and tertiary education, including university, through our own schools and helping other institutions by 2030 through iPeople.
Summary
Ayala will increase renewable energy portfolio to 5 GW in the Philippines and in foreign markets by 2030 through AC Energy.
Activities & Initiatives
Promote and increase access to clean energy.
Measures & Targets
Increase renewable energy portfolio to 5 GW in the Philippines and in foreign markets by 2030 through AC Energy.
Summary
Ayala will expand access to banking and financial services to 25% of the underbanked population of the Philippines through Bank of the Philippine Islands (BPI).
Activities & Initiatives
Promote inclusivity through providing banking services to the underbanked population.
Measures & Targets
Expand access to banking and financial services to 25% of the underbanked population of the Philippines (addressable C and D markets) through Bank of the Philippine Islands (BPI).
Summary
Ayala will lead the country’s digital transformation by providing universal and affordable internet access in the Philippines for 90% of the population by 2030 through Globe Telecom.
Activities & Initiatives
Accelerate a sustainable digital lifestyle where people across society's segments have reliable access to technology.
Measures & Targets
Lead the country’s digital transformation by significantly increasing access to information and communications technology for consumers and businesses, providing universal and affordable internet access in the Philippines for 90% of the population by 2030 through Globe.
Summary
Ayala will upgrade to sustainable infrastructure to promote resource efficiency and clean technology, avoiding 36,135 tons CO2 through AC Infrastructure.
Activities & Initiatives
Support national infrastructure development through innovative and environmentally-friendly transportation services.
Measures & Targets
Upgrade infrastructure to make it sustainable, with increased resource efficiency and greater adoption of clean and environmentally sound technologies and industrial processes with 36,135 tons CO2 equivalent avoided through AC Infra.
Summary
Ayala will promote and enable low-emission vehicles and demonstrate manufacturing value add of USD 1 billion through AC Industrials.
Activities & Initiatives
Significantly reduce environmental impacts through business operations and innovative solutions.
Measures & Targets
Enable the first Philippine-manufactured, commercially viable, and market-accepted electric vehicle, resulting in reduced emissions through AC Industrials, and promote low-emission vehicles, ensuring that each brand offers a minimum of one model not fully dependent on a combustion engine powertrain through AC Automotive. Globally and on the manufacturing side, promote inclusive and sustainable industrialization by demonstrating manufacturing value add of USD 1 billion across all developing countries where it has operations through IMI.
Summary
ACEN will protect and conserve biodiversity, maintain ecosystem services, and adequately manage living natural resources in our new projects and throughout the lifecycle of our power plants. We will develop a framework to measure progress by 2023.
Activities & Initiatives
To help protect and enhance biodiversity that will have a positive impact on our host communities.
Measures & Targets
We will develop a framework to measure our progress and include a full report to our 2023 Sustainability Report.
Biodiversity Assessments
ACEN commits to conducting a rapid biodiversity assessment before engaging a project and at regular intervals after projects begin.
The assessment will determine whether a habitat is modified, natural, or critical, as defined by IFC Performance Standard (PS) 6, to determine the biodiversity importance of an area.
ACEN will only operate in a critical habitat if no other viable alternatives within the area exist (e.g., modified or non-critical natural habitats).
Forests/ Land Conversion
ACEN aligns itself with the International Finance Corporation (IFC) standards on biodiversity. IFC categorizes forest areas as natural habitats. ACEN will only convert natural habitats if no other viable alternatives within the area exist (e.g., modified or non-critical natural habitats) and external stakeholders have been consulted during the initial phase of every project development.
Mitigation measures will be designed to achieve no net loss, including identifying and protecting set-asides and/or restoring habitat during and/or after operations.
Endangered Species
ACEN will not engage in projects in habitats with Critically Endangered or Endangered Species, as listed on the International Union for the Conservation of Nature (IUCN) Red List of Threatened Species if the project would lead to a net reduction of the species over a reasonable period.
If the species is listed nationally / regionally as critically endangered or endangered in countries that have adhered to IUCN guidance, the critical habitat determination will be made on a project-by-project basis in consultation with competent professionals.
Migratory Species
ACEN will not engage in projects in habitats with migratory species threatened with extinction or migratory species that need or would significantly benefit from international co-operation, as identified by the Convention on the Conservation of Migratory Species of Wild Animals.
Water Resources and Aquatic Habitats
ACEN will conserve water resources, particularly in areas with limited water resources, using technology such as dry scrubbers and air-cooled systems, water withdrawn from the sea is returned 100%.
To manage aquatic habitats, ACEN will reduce intake flow for freshwater rivers and streams, lakes and reservoirs, and estuaries and tidal rivers to a level sufficient to maintain resource use and biodiversity.
Summary
ACEN commits to protect communities, including indigenous populations and vulnerable populations, possibly be affected by our new project developments and operations. We will develop a framework for measuring progress by 2023.
Activities & Initiatives
To partner with our host communities, empower people, improve their lives and respect human rights.
Measures & Targets
ACEN, the listed energy platform of the Ayala group, will develop a framework to measure our progress and that we can include in our 2023 Sustainability Report.
ACEN seeks to build in areas with little or no population and will avoid involuntary resettlement wherever possible.
ACEN will engage and collaborate with the affected communities and local government units when acquiring land for our projects.
ACEN will establish grievance mechanisms in the early phase of every new project development.
ACEN will conduct a rapid assessment to determine if involuntary resettlement or economic displacement will occur due to a project.
In the case of physical displacement, ACEN will provide compensation, in either resettlement property or cash, at full replacement cost for land and other assets lost.
In the case of economic displacement, ACEN will compensate for lost assets and access to assets at full replacement cost and provide opportunities to improve or at least restore their means of income-earning capacity production levels and standards of living.
ACEN also adheres to high standards on a broader range of material issues that impact power companies. These include business ethics, labor practices, employee health and safety, water and waste management, materials sourcing and efficiency, and product design and lifecycle management.
We will develop a plan to match our growth in power generation with investments that will benefit our host communities, such as livelihood programs that will complement our biodiversity conservation initiatives in our project sites.
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Recognizing it will take alignment of all our organizations to scale impact globally, we invite you to join the movement as a Steward of Inclusive Capitalism. Together, the collective action of Council members will contribute to a fairer, more inclusive and sustainable future for all people and our planet.
