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Pasay City, Philippines – August 20, 2019 Ayala believes that building sustainability into business strategies, goals and practices would enable companies to grow responsibly while safeguarding their relevance to stakeholders.

Ayala Chairman & CEO Jaime Augusto Zobel de Ayala recently was one of the panel speakers at the United Nations Global Compact Network Philippines’ (UN GCNP) Sustainability Summit 2019, where Ayala was a platinum co-sponsor. At the panel, he placed a special emphasis on integrating sustainability in business strategies because at Ayala, sustainability is key to bridging persistent societal gaps that have excluded many Filipinos.  In April 2019, it furthered this integration by launching the Ayala Sustainability Blueprint, a framework that allows each business unit to champion specific United Nations Sustainable Development Goals (UNSDGs) and make significant impact in sectors that would benefit the most. Ultimately, it aims to bridge the Filipino to 2030, where Ayala sees him rooted in a safe, secure, sustainable, inclusive, and progressive country. Ayala, a founding member of the GCNP in 2017, first formally aligned its businesses with the UNSDGs in 2016.

 “We designed a long-term Sustainability Blueprint that lays out actionable and measurable targets that address critical environmental, social, and governance gaps that the country faces today. It is specifically designed to support the achievement of the UNSDGs by 2030 that will enable us to be more deliberate in monitoring and evaluating our sustainability targets and allocate resources to these initiatives more appropriately,” said Zobel, who in 2017 was named a UNSDG Pioneer for Sustainable Business Strategy and Operations.

Earlier today, Globe Telecom, Inc. (Globe), Ayala’s telecommunications arm, became the first business unit within the Ayala group to join the UN GCNP. Globe’s sustainability philosophy is anchored on its Purpose of treating people right to do a Globe of Good. Globe focuses its contribution to SDG 9: Industry, Infrastructure and Innovation as the company continues to invest in ICT infrastructure, bringing internet connectivity and digitalization to the Filipino people. 

“Integral to our vision of the Philippines as an admired nation is having first world internet connectivity supporting a robust digital economy.  We will continue to push forward with innovations that enrich the lives of Filipinos, promote financial inclusion, education, health and wellness, livelihood and so much more,” said Globe Telecom President & CEO Ernest L. Cu.

Since UN GCNP’s formation in 2016, its board composed of founding members Ayala Corporation, Philippine Marketing Association, Landbank of the Philippines, Manila Doctors Hospital, Pilipinas Shell Petroleum Corporation together with board members Nestle Philippines and International Care Ministries, an NGO who has recently joined, has tirelessly pursued a number of firsts in jumpstarting the Sustainability agenda in the corporate world.

It has launched the very first Sustainability Summit in November 2017 at the Philamlife Tower to raise awareness on the challenges of building sustainable businesses in the country. In the same year, an informal round table discussion on a similar topic with Unilever’s Philippine CEO, Mr. Benjie Yap was organized which created a positive impact in the business community. In 2018, Mr. Zobel, who became an SDG Pioneer in 2017, incited the conversation on the long term benefits of looking at sustainability through a business lens at the first-ever CEO SDG Circle Forum in Manila. In the same year, GCNP held the first SDG Reporting Summit at Manila Doctor’s Hall. Today, its founding members jointly call on other private entities to strongly adapt the SDGs in their businesses to help scale faster its global achievement by 2030.

Globe Telecom, Inc. (Globe) was formally welcomed as a participant to the UN GC Network Philippines becoming the first business unit within the Ayala group to become part of the largest sustainability movement for business in the world. Globe champions UN Sustainable Development Goal 9 focused on Industry, Infrastructure and Innovation as the company continues to invest in ICT infrastructure, bringing internet connectivity and digitalization to the Filipino people. “Integral to our vision of the Philippines as an admired nation is having first world internet connectivity supporting a robust digital economy.  We will continue to push forward with innovations that enrich the lives of Filipinos, promote financial inclusion, education, health and wellness, livelihood and so much more,” said Globe Telecom President & CEO Ernest L. Cu.

At the United Nations Global Compact (UN GC) Network Philippines’ Sustainability Summit 2019 last August 20, Ayala Chairman & CEO Jaime Augusto Zobel de Ayala joined a panel and shared how the Ayala Sustainability Blueprint allows the group to grow responsibly, remain relevant to its stakeholders and help address persistent societal gaps that affect Filipinos by aligning with UN Sustainability Development Goals. Globe Telecom became the first Ayala company to join the UN GC Network Philippines.

In photo L-R:

Saran Song, AMRU Rice Cambodia Chair & CEO
Jaime Augusto Zobel de Ayala, Ayala Chairman & CEO
Hans Sy, SM Prime Holdings, Inc. Chairman of Executive Committee
Meshvara Kanjaya / President & Director / Ranch Market (Indonesia)
Ericson James Pacaba, Moderator

FERNANDO ZOBEL DE AYALA
AYALA GROUP INTEGRATED SUMMIT 2019 (Corporate Governance, Risk Management, and Sustainability)
August 9, 2019 | New World Makati
CLOSING REMARKS
________________________________________________________________________________________________

Thank you to everyone for joining us in this milestone gathering.  It was wonderful to hear from some our speakers and this is probably one of the first summit of its kind. My thanks to TG, Mon, Vickie, and Cathy for leading this effort and always raising the bar for the Ayala group.

I would like to thank our speakers Peter Bakker, Commissioner Amatong, Miho Kurosaki, Ben Ridley, and Dominic Thurbon for their insightful presentations as well as our moderator Jessica Cheam for a productive exchange in the panel session. I think you will all agree that these sessions have provided a deeper sense of global trends in ESG.

Our own ESG framework at the Ayala group is a constant work in progress and these gatherings help us ensure that we are always evolving and relevant to our environment. I learned so much from our speakers today and let me quickly recap some highlights from their sessions. My thanks to Celeste for helping me recap some highlights from their sessions.

In Peter’s session, we took note of the strong correlation between sustainability and financial performance. A board’s responsibility now goes beyond the fiduciary duty and should encompass ESG considerations. The board must now be held accountable for the company’s sustainability performance and not just financial returns. Creating a separate P&L for environmental and social metrics is something we will definitely look into at the Ayala group.

In Commissioner Amatong’s session, a key takeaway for me is that instead of viewing this new rule from the SEC mandating the submission of sustainability reports as one more government report, it should be considered instead as an opportunity for listed companies to communicate our sustainability performance properly. The key learning here is the importance of making sure that we have accurate data available for investors and third-party rating agencies who evaluate us based on our public disclosures. I also want to thank him for the positive words on AC Energy’s issuance of a green bond early this year.

From Miho, I appreciate the overview of the TCFD framework, which I find to be aligned with our own agenda of integrating ESG with our strategic planning and risk management processes.

From Ben and Dominic, we have heard how impact investing has gained traction in recent years, driven by market dynamics such as technological disruption, and customers rewarding sustainable practices. They both highlighted the need to adopt a paradigm shift and view ESG from a strategic perspective—that it should be part and parcel of our overall strategic planning, decision-making, and investment process. As Jaime mentioned earlier, at the Ayala group, we have been pushing the envelope around this new thinking, with the creation of the Ayala Group Sustainability Blueprint, which now entails close monitoring.

The insights we gained today would serve us well as we work towards the achievement of our goals under the sustainability blueprint. I know that there are more sessions this afternoon and I hope that you also find them useful.

The seniority of the participants in this conference today is a clear indication of the seriousness with which we are pursuing ESG. We hope we can count on you to keep raising the standards in our business units. 

Our thanks once again to our speakers for your unique insights.

Thank you.

Makati City, Philippines – August 9, 2019 In a milestone event, Ayala Corporation (Ayala) held its first Integrated Corporate Governance, Risk Management and Sustainability Summit to deliberately push the connection of these three disciplines in driving business growth responsibly. Ayala believes that ingraining sustainability in growth strategies significantly helps mitigate risks, which leads to heightened governance procedures and better disclosures. This is a strategic imperative at the Ayala group.

“We believe that by integrating Corporate Governance, Risk Management and Sustainability, we will fortify the group’s capacity to function as a more efficient and relevant partner in nation building. To us, sustainability is key to bridging persistent societal gaps that have disenfranchised generations of Filipinos,” said Ayala Chairman & CEO Jaime Augusto Zobel de Ayala. In 2017, Zobel was chosen as a UN Sustainable Development Goals (UN SDGs) Pioneer for Sustainable Business Strategy and Operations, a first in the Philippines and Southeast Asia.

Following its Board of Directors’ call for the company to align businesses to the UN SDGs, Ayala launched its Sustainability Blueprint, a group-wide plan that allows its companies to champion and operationalize specific UN SDGs. It aims to help Ayala address major challenges and societal gaps affecting Filipinos today and contribute tangibly to three focus areas. These are Access & Inclusivity and Productivity & Competitiveness for more Filipinos, and Responsible Growth & Innovation for its businesses. The Blueprint’s goal is to bridge the Filipino to 2030, where Ayala envisions the Filipino as a global citizen with firm roots in a country that is safe, secure, sustainable, inclusive, and progressive.

For example, in healthcare, research indicated that 43% of low to middle-income Filipinos have not been to a doctor in more than a year, with 6 out of 10 Filipinos dying without ever seeing a doctor. Because Ayala believes that all Filipinos deserve to live a healthier lifestyle, AC Health is building an integrated ecosystem of accessible, affordable, quality healthcare. It aims to serve one in every five Filipinos by 2030, through FamilyDOC, its community-based primary healthcare clinics, Generika, its retail pharmacy, and various health tech investments.

In the finance sector, about two-thirds of Filipinos are unbanked and thus, vulnerable to the risks connected to unauthorized lenders. Ayala believes that all Filipinos must have alternative means to access the financial system. Through BPI’s BanKo, unbanked Filipinos have access to loan products to start their SMEs. Furthermore, Globe’s Mynt, offers alternative credit scoring models and simplified access to microloans through its mobile platform.

In education, 65% of Filipino graduates are deemed unemployable from the lack of industry-related skills, while 15% of the global workforce are projected to switch jobs by 2030 to meet new demands. Addressing education and employment, Ayala through its partnership with the Yuchengco Group, aims to provide an innovative learning experience to equip students with industry-related skills, help improve graduates’ employment prospects, reduce the dropout rate, and strengthen the quality of educators.

“In my view, we need a deliberate and strong alignment with sustainability principles and adopt clear and consistent long-term thinking. Complemented by effective execution and meaningful impact in critical sectors… Embracing the SDGs as guiding principles to doing business is a winning proposition for both the company and its stakeholders. It goes beyond improving a company’s brand; actual economic value is generated, and companies help the country by addressing underserved needs through inclusive business models, products and services,” concluded Ayala President & COO Fernando Zobel de Ayala.

To accelerate growth of sustainable businesses, Ayala continues to partner with like-minded institutions like the World Business Council for Sustainable Development (WBCSD), where it became the first Philippine member in June 2019, and the United Nations Global Compact Network Philippines, of which it was a founding member in 2017.

To learn more about the Summit and its full roster of global speakers, click here.

JAIME AUGUSTO ZOBEL DE AYALA
AYALA GROUP INTEGRATED CORPORATE GOVERNANCE, RISK MANAGEMENT, AND SUSTAINABILITY SUMMIT 2019
August 9, 2019 | New World Makati
WELCOME REMARKS

_____________________________________________________________________________________________

Good morning to everyone, and thank you for being here.

I would like to welcome our board of directors, senior leadership, management teams, and all our employees across the group for taking the time to be here today. Also joining us today are some of our business partners and guests from the government, civil society, and the academe. Welcome to all of you and thank you for being here.

Special thanks to our speakers, most of whom have flown in from different parts of the world:

•  Our keynote speaker, Peter Bakker, President and CEO of World Business Council for Sustainable Development based in Switzerland. As you know, Ayala recently joined WBCSD and we look forward to working with them on how we can elevate our own sustainability engagement to achieve greater impact.

• Commissioner Ephyro Amatong of the Securities and Exchange Commission who will provide some granularity on the SEC’s recently released set of guidelines on sustainability reporting.

• Miho Kurosaki, Lead Analyst and Researcher on Energy in Japan and Kore at Bloomberg in Japan

• Ben Ridley, Director and Deputy Global Head of Sustainability Affairs at Credit Suisse in Hong Kong

• Dominic Thurbon, Partner, Climate Change & Sustainability Services at Ernst & Young in Australia

• Na Boon Chong, Managing Director, Consulting Southeast Asia at AON in Singapore

• Derek Taylor, Operations Director for the Crisis and Security Consulting Practice in Asia Pacific at Control Risks in Singapore

• Elaine Ng, Executive Director for Client Coverage in Asia at MSCI in Hong Kong

• Deborah Latimer, Partner, Governance, Regulation, and Conduct Advisory at Deloitte in Australia

• Christopher Coe, Head of the Agriculture and Global Clients at AON in Singapore

• Nandkumar Vadakepatth, Head of Regional Sustainability Operations at DNV-GL in India

and

• Our panel moderator, Jessica Cheam, editor-in-chief at EcoBusiness in Singapore

Thank you for taking the time to be here and share your perspectives around the areas of governance, sustainability, and risk management.

As you know, this summit is a milestone event for the Ayala group. For the first time, we have combined corporate governance, risk management, and sustainability into a unified summit whereas in the past, we would hold three separate gatherings. Holding a unified summit that touches on environmental, social, and governance is a natural progression as it facilitates the paradigm shift we have embraced in the Ayala group in the way we view governance, sustainability, and risk management as interconnected disciplines that should be part and parcel of our overall strategic planning, decision-making, and investment processes.

As you all know, to institutionalize this perspective, we designed a long-term sustainability blueprint that lays out actionable and measurable targets that address critical environmental, social, and governance gaps that the country faces today. We identified marginalization, large untapped potential of our human capital, and irresponsible growth leading to long-term environmental damage as the three critical challenges our group can focus on.

The Ayala Sustainability Blueprint, specifically designed to support the achievement of the UN Sustainable Development Goals by 2030, will enable us to be more deliberate in monitoring and evaluating our sustainability targets and will help us allocate resources to these initiatives more appropriately.

Under the blueprint, we will focus on contributing to the achievement of three pillars where we believe our businesses can generate the most significant and lasting impact. These are: access and inclusivity, productivity and competitiveness, and responsible growth and innovation. Let me discuss this in greater detail by citing examples of our initiatives across the Ayala group in support of these three pillars.

This integrated summit is an excellent platform to start a conversation around ESG—how we can elevate our thinking, enhance our capabilities, and raise our current standards to a level that is widely accepted globally.

We have a full day with a solid set of speakers. I thank the organizers of the event—the Sustainability and Corporate Governance teams led by TG Limcaoco and Mon Hermosura.

Again, a warm welcome to you all and thank you for joining us in this first Ayala Integrated Summit on Corporate Governance, Risk Management, and Sustainability. 

Keynote Remarks
Fernando Zobel de Ayala
President and COO, Ayala Corporation
Financial Executives of the Philippines
25 July 2019

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Mr. Eusebio Tan, President of FINEX; other officers and members of FINEX present today.

Good afternoon. Thank you for the kind invitation to join your general membership meeting. It is an honor to share some thoughts on building a progressive Philippines through sustainable and long-term visioning and execution. I believe that these are critical topics for the development of our economy, especially given Asia’s rapid ascent as the global epicenter for massive economic growth.

We as a country cannot afford to let this opportunity pass us by. I believe that the Philippines remains in a unique position to ride this strong period of growth in the region: our economic fundamentals are strong, and we continue to enjoy a demographic dividend. We do however face several economic and social challenges that we must address. In fact, accelerating our growth depends on how well we address persistent issues on inclusivity and human capital development. Ensuring long-term prosperity for our people requires that we in the private sector adopt a long-term view, collaborate more closely and engage on a more concerted effort at generating sustainable social and economic impact.

In a report earlier this month, McKinsey boldly exclaimed that Asia’s time as the world’s economic powerhouse had already arrived. In 2000, Asia accounted for just under one-third of global GDP. Today, the region is on its way to exceed 50% of global GDP by 2040 and it may also account for 40% of total global consumption by that time. Furthermore, despite Asia’s diversity in cultures, governments, and levels of development, there is a region-wide upward trend in key economic and social indicators. For McKinsey, the question is no longer about how quickly the region will rise. It will now be about how Asia will lead this new global configuration.

On the private sector side, McKinsey noted that Asia’s share of the world’s top performing conglomerates rose from 19% to 30% over the past two decades. For instance, in 1997, only eight Philippine firms, who collectively generated $3 billion of revenue, were part of the largest 5,000 companies worldwide. As of 2017, that figure almost doubled to 15 Philippine companies, earning $60 billion of revenue.

Our capital markets have likewise grown tremendously in recent years, with FINEX’s contributions along with others. Since 2000, more and more companies have accessed funding through the public markets, attracting more capital and fueling aggressive growth. Philippine companies raised roughly $9 billion through public markets from 2000 to 2009. Since 2010, this figure tripled to nearly $27 billion.

Several pieces of research mention that the country can reap the benefits of these developments. However, this comes with a caveat that the right conditions should be present. The Boston Consulting Group notes that the Philippines will transition to middle income country status by 2030, with the Middle Income and Affluent Consumer segments expanding to cover 58% of the population by 2030. Meanwhile, HSBC projects that the Philippines may become the 27th largest economy out of 75 countries by 2030. In their opinion, the size of our economy may surpass Malaysia, Hong Kong, Taiwan, and Singapore by that time.

While HSBC’s model does not fully consider the effects of possible trade wars and natural disasters, among others, the forecasts were dependent on certain indicators. These include the country’s potential to grow further based on a governance system conducive to investment; openness to technology; and the quality of its human capital, as seen in its demographics and the quality of healthcare and education.

I believe that we continue to have a golden opportunity to fully participate in Asia’s continuing growth story. However, as the literature implied, we need to establish the appropriate environment for progress. In my view, we need a deliberate and strong alignment with sustainability principles and adopt clear and consistent long-term thinking. This of course should also be complemented by effective execution and meaningful impact in critical sectors. Let me first talk about sustainability and long-term thinking.

An increasing number of companies are adopting a holistic view of sustainability—that is, sustainability not just regarding the environment, but also on how a company can create long-term social and economic value through businesses and philanthropic efforts. This has been at the core of Ayala’s thinking for several years now. We wanted to ensure that sustainability was embedded in our operations and that we could make tangible contributions to the UN Sustainable Development Goals. We are guided by our Sustainability Blueprint, wherein all our companies committed that by 2030, significant contributions will have been clearly made to improve social and economic inclusivity, innovation and infrastructure development, and climate resiliency. Whereas previously, we only reported our contributions, we have now set targets and identified champions for the SDGs that are aligned with our businesses.

Embracing the SDGs as guiding principles to doing business is a winning proposition for both the company and its stakeholders. It goes beyond improving a company’s brand; actual economic value is generated, and companies help the country by addressing underserved needs through inclusive business models, products and services. In addition, integrating sustainability and long-term thinking to business operations is a key consideration for many international institutional investors.

We have experienced this in our engagements with several strategic partners, large institutional investors, sovereign funds, and pension funds. As an example, CDPQ—one of the world’s largest institutional investors that mainly manages the pensions of Quebec, made a significant investment in Ayala last year. They made it very clear that it was important to them that our companies were aligned in a vision of investing in critical industries with a lasting and far-reaching impact to a growing economy and society.

Second, an increasing number of young global workers are looking for meaning in their jobs. This is particularly true for the Millennial generation, Generation Z, and most probably for Generation A—described by ABN Impact as that segment of the population born from 2010 onwards.  Studies show that companies who demonstrate that their operations contribute to a larger societal goal garner higher employee engagement scores. Beyond behavioral metrics, this also has an economic incentive: companies can attract the best available talent, keep employee attrition rates at a minimum, and subsequently significantly decrease turnover and training costs.

For us to fully participate in the ongoing renaissance of Asia, aside from sustainability and long-term thinking, we are called to generate authentic, broad-based, and meaningful value in areas with the strongest potential for impact. We cannot make a quantum leap in development if we do not effectively address lingering economic and social challenges.

This has been mentioned in previous forums, but I believe that it is worth emphasizing: Given persistent gaps and existing opportunities for value creation, four areas hold tremendous potential to boost our development. These are financial inclusion, sustainable tourism, education, and healthcare.

On financial inclusion, as you know, about two-thirds of Filipinos are unbanked and exposed to the high risks connected to unauthorized lenders charging exorbitant rates. We are delighted that the Bangko Sentral has been open to alternative means to access the financial system, spawning several innovative solutions both by incumbents and fintechs. Encouraging data from the Milken Institute shows that our fintech industry has been expanding. Fintech investments increased from $3.6 million in 2015 to $96.6 million as of 2018. Over the same period, 67 fintech companies were also established in the country. I have no doubt that this sector will continue to expand quickly given the enormous opportunities.

Our contribution in this shared mission for greater financial inclusion includes BPI BanKo, which we established a few years ago to serve micro, small, and medium enterprises, mostly in rural areas. To date, BanKo has disbursed P4 billion of microloans to 60,000 entrepreneurs across its 200-branches nationwide. Mynt, our joint venture with Ant Financial at Globe, harnesses mobile technology and alternative credit scoring models to likewise provide microloans to its 171,000 users with active credit lines. To date, Mynt has disbursed P640 million of credit. After testing these models, it is our intent to now grow both entities exponentially in the medium term. It is our hope to serve a far larger segment of society and to provide them the capital to participate in the country’s growth.

Shifting now to sustainable tourism, this is a sector that our country has not yet fully embraced and yet it is probably the one sector that can have the highest impact on job creation as well as poverty alleviation in our rural areas. We have all the natural skills and natural environments for this industry, but we continue to have one of the lowest international tourist arrivals in the region. There is no question that there has been a significant improvement in the last ten years. To illustrate, between 2006 and 2018, international arrivals grew 2.5x to an all-time high of 7.1 million. The sector’s direct economic impact has also more than doubled in the last decade, now accounting for 8.7% of GDP and 2.3 million jobs.  By 2028, the World Travel and Tourism Council projects that tourism’s direct contribution will reach P2.5 trillion, equivalent to around 10% of GDP and an estimated 3.2 million jobs. This will require a clear ambitious masterplan that is embraced and well-executed across several administrations by both government and the private sector.

By comparison, as of 2018, Indonesia attracted close to 16 million visitors, Singapore had close to 19 million, Malaysia had 25.8 million, and Thailand continues to lead ASEAN at 38.2 million international tourist arrivals. I do, however, hope that as we aggressively grow this sector, we will learn from the mistakes in the region and make sure that we develop in a responsible and sustainable manner. We already have enough examples of destroying some of our most unique destinations. Secretary Berna Romulo Puyat should be commended for her efforts in creating the proper guidelines for responsible and sustainable tourism.

Sustainable tourism holds much potential to significantly boost our country’s development. Towards this end, we partnered with the UP School of Economics to hold a Sustainable Tourism Forum to engage with all stakeholders on how we can work together to further this opportunity. May I take this moment to invite all of you to join us on September 27, from 2pm to 5pm, here at the Fairmont Hotel. Tourism is a sector that we will be investing in very heavily in the coming years, and we welcome working with a broader coalition of players to bring the quality of our tourism industry much closer to or even exceed to peers in ASEAN.

The next two areas may perhaps be the most important as it involves investing in the long-term welfare of our people. This involves providing our countrymen with accessible and effective education and healthcare that in turn leads to dignified employment, and a stronger and healthier population.

Regarding education, we continue to face a serious condition wherein 3.6 million Filipinos are out-of-school youth. For those that do manage to graduate, it is disheartening that a 2017 study found that 65% of graduates lacked industry-relevant skills, and were, thus, ineligible for available jobs. We must provide our youth with more accessible opportunities to enter school, and while there, teach them relevant technical and soft skills that can give them a head start as they join the workforce.

With our partnership with the Yuchengco group, we now reach 60,000 students through Mapua University, Malayan Colleges Laguna and Mindanao, National Teachers College, University of Nueva Caceres, and APEC Schools. In some universities and other partner schools, semester-long curricula are co-designed with employers to ensure that relevant skills are inculcated among students. We are delighted that 90% of graduates who have undergone this co-designed program are employed within 90 days, and with 20% higher starting salaries.

On healthcare, meanwhile, it is unacceptable that while we are proud of our demographic dividend and solid economic fundamentals, the physical well-being of our people remains greatly subpar. Allow me to raise a dire and seemingly overlooked issue: the country currently faces a massive case of child malnutrition and stunting—or children with impaired physical and mental growth, manifested by their low height.

Referring to national health surveys, economists Dr. Cielito Habito and Dr. Emmanuel De Dios, cite that 33% of children under the age of 5 are stunted as of 2015. For the poorest 20% of the population, the rate of child stunting is at 50%. At the same time, 21% of children are underweight. We cannot allow this to continue—school feeding programs and nutribuns are an inadequate solution. We need a comprehensive plan that addresses the root causes of the issue—from preventing teen pregnancies that may be resulting in malnourished births; to targeted and sustained nutrition programs both for expectant mothers and children in the country’s poorest communities.

Dr. De Dios has written about how Filipinos are among the shortest people in Southeast Asia. A disturbing trend is that the height of Filipina women has been diminishing over a 50-year period, since 1946. He stated that the Philippines, along with Pakistan, are the only major Asian countries where height impairment has occurred. The other cases are found in Africa. Beyond being a physical growth issue, this has economic implications. To quote Dr. Habito’s column, “A 1% loss in adult height as a result of childhood stunting is linked with a 1.4% loss in economic productivity, resulting in 20% less earnings as adults. Stunting is associated with up to 3% GDP losses annually.” How can we possibly grow sustainably as a country when a third of our people are born with this disability? We must immediately and effectively address this critical and often ignored issue. It can be resolved, and other countries have seemingly found a model for success. For instance, Peru previously had one of the highest stunting rates in South America. By looking at stunting as a human development challenge and considering it as a national priority that transcends multiple administrations, Peru was able to dramatically reduce its child stunting and malnutrition rate in under 10 years—from 28% in 2008 to just 13% in 2016.

To close, we have a unique opportunity to continue and even increase the impressive growth that we have achieved consistently for the past 10 years in a vibrant and fast-growing region. But it will not happen if we do not build far stronger foundations in infrastructure, social services, financial inclusion, job creation and education among others. The building of these foundations will take time and will have to be continued from one administration to the next. FINEX and the rest of the private sector play a critical role, given our reach, scale, and capabilities. A comprehensive, collaborative, and concerted effort is needed to properly respond to these challenges.

There is no question that we possess the skill and resources to create a sustainable, progressive, and inclusive Philippines—one that we can attain within the foreseeable future.

Once again, thank you very much for this invitation.  

***

View presentation here.

Makati, Philippines – July 25, 2019 For Ayala President & COO Fernando Zobel de Ayala, Filipinos have massive potential to reap the benefits of Asia’s rise in the global economy. However, ensuring the Philippines’ long-term prosperity requires that the private sector adopt a long-term view, collaborate more closely and engage on a more concerted effort with government to generate sustainable social and economic impact. Zobel shared his thoughts in a keynote address to members of the Financial Executives of the Philippines.

According to McKinsey, Asia is on its way to exceed 50% of global GDP by 2040 and may account for 40% of total global consumption by that time. Other research by The Boston Consulting Group and HSBC also suggest that by 2030, the Philippines’ economy may surpass Malaysia, Hong Kong, Taiwan, and Singapore in size, to make it the 27^th largest out of 75 countries. However, realizing this potential for growth would depend on implementing the right governance system, openness to technology, and the quality of its human capital.

“We need to establish the appropriate environment for progress. In my view, we need a deliberate and strong alignment with sustainability principles and adopt long-term thinking. This of course should also be complemented by effective execution and meaningful impact in critical sectors, especially finance, tourism, education and healthcare,” Zobel said.

Ayala believes that these areas hold tremendous potential to boost the country’s economic development. It is actively contributing to these sectors as part of its commitment to the UN Sustainable Development Goals (SDGs). The group formally aligned its business strategies to the SDGs in 2016 and is a founding member of the UN Global Compact Network Philippines. It continues to be guided by its newly launched Sustainability Blueprint, wherein all Ayala companies champion SDGs to achieve specific targets by 2030.

To illustrate this, Ayala is doing its part to promote inclusive finance, as two-thirds of Filipinos are unbanked and are vulnerable to the risks connected to unauthorized lenders. With the Bangko Sentral’s support, Ayala is able to provide alternative means to access the financial system through BPI’s BanKo, which to date has disbursed P4 billion of microloans to 60,000 entrepreneurs across its 200 branches nationwide. In addition, Mynt, a partnership among Globe Telecom, Ayala Corporation and Ant Financial, harnesses mobile technology and alternative credit scoring models to likewise provide microloans to its 171,000 users with active credit lines. To date, Mynt has disbursed P640 million of credit.

In the tourism space, Ayala sees potential to have a high impact on job creation as well as poverty alleviation in rural areas through sustainable tourism. Ayala believes that companies must leverage on the boom in tourism that the Philippines has seen over the last decade, wherein the sector’s direct economic impact more than doubled and now accounts for 8.7% of GDP and 2.3 million jobs. By 2028, the World Travel and Tourism Council projects that tourism’s direct contribution will reach P2.5 trillion, equivalent to around 10% of GDP and an estimated 3.2 million jobs. Ayala remains hopeful about sustainable tourism and what it can do for the country.

In the education space, 65% of Filipino graduates are deemed unemployable from the lack of industry-related skills. To help remedy this, AC Education is helping prepare the Filipino youth to enter the workforce and is training quality educators. With its partnership with the Yuchengco group, Ayala now reaches 60,000 students through Mapua University, Malayan Colleges Laguna and Mindanao, National Teachers College, University of Nueva Caceres, and APEC Schools. In some universities and other partner schools, Ayala works closely with employers to co-design a semester-long curriculum that is customized to employment needs. As a result, 90% of graduates who have undergone this co-designed program are employed within 90 days, and with 20% higher starting salaries.

In healthcare, AC Health is building an integrated healthcare system that aims to improve healthcare for all Filipinos. However, the overall physical wellbeing of Filipinos remains subpar with an alarming rate of childhood malnutrition and growth stunting. According to economists Dr. Cielito Habito and Dr. Emmanuel De Dios, there is a 50% rate of child stunting for the poorest 20% of the population. At the same time, 21% of children are underweight. Furthermore, a 1% loss in adult height as a result of childhood stunting is linked with a 1.4% loss in economic productivity, resulting in 20% less earnings as adults. Stunting is associated with up to 3% GDP losses annually. Ayala believes that this critical and often ignored issue can be resolved through long-term human development programs.

“In the Philippines, we have a unique opportunity to continue and even increase the impressive growth that we have achieved consistently for the past 10 years in a vibrant and fast-growing region. But it will not happen if we do not build far stronger foundations in infrastructure, social services, financial inclusion, job creation and education among others. Building these foundations will take time and will have to be continued from one administration to the next,” Zobel further stressed.

***

Read Keynote Remarks here.
View presentation here.

Makati City, Philippines – July 11, 2019 As part of its aggressive push toward Digital Transformation, the Ayala group launched Data Base, its first ever employee-based community for data talents from within the group. Driven by the AC Analytics team, it is a venue where “Data Champions” can collaborate and create data-driven solutions that will positively impact business operations. Held at Kickstart Ventures in Paseo de Roxas, the gathering had over 100 attendees from different Ayala business units as well as Ayala executives. 

Ayala Chairman & CEO Jaime Augusto Zobel de Ayala said in his opening remarks, “The Ayala of the future is an Ayala that constantly reinvents itself. Throughout Ayala’s history, we have worked to cultivate this culture of innovation and as a result, this has helped us understand and respond to the changing needs of the Filipino.” 

Last April 2019, Zobel announced at Ayala’s Annual Stockholders’ Meeting press briefing that digitization is key in propelling the 185-year-old company into the future. Today, Ayala is leveraging its group wide assets to help improve its businesses and deliver products and services in a more efficient way. 

“Our portfolio of companies allows us to touch the lives of many Filipinos in various ways. The richness of the data we collect as a group enables us to better understand our customers, optimize our operations, and identify potential opportunities,” Zobel further shared. 

As the central hub for Ayala’s data experts, Data Base can help unify the group in optimizing its businesses, as digitization progressed in different ways and at different rates across the business units. The community also aims to foster new ways of working to help drive a truly digital culture. 

This inaugural meeting focused on a data storytelling session with presentations from Globe Telecom Director for Advanced Analytics Pam Morales-Cabudoy, AC Health Strategy and Communications Head Rizzy Alejandro, Mynt Data Science Head Inigo Benavidez, and Kalibrr Artificial Intelligence Research Head Aivin Solatorio. 

In photo: Ayala Chairman & CEO Jaime Augusto Zobel de Ayala (front row, second from left) with other Ayala executives and attendees. 

Four interns were proclaimed the Grand Champions at the first ever Ayala Group Interns’ Innovation League (AGI2LE), the culminating event at the 11th Ayala Group Summer Internship Program (AGSIP). The awarding ceremony, which took place at the Globe Auditorium, Maybank Performing Arts Theater in Bonifacio Global City, was attended by 120 Ayala interns and Ayala executives. The winning team named “Osena” was comprised of Maria Betina Ramos (ADMU), Alexander Go Tian (UP), Joe Diether Cabelin (UP), and Jose Karlo Pascual (UA&P). They pitched “Paglago”, a B2B platform that aims to deliver fresh produce efficiently and sustainably from Luzon farmers to Manila kitchens. Team Osena won P50,000, an immersion trip to the headquarters of an Ayala technology partner company, and job offers from the Ayala group.

In his opening address to the interns, Ayala’s Chief Human Resource Officer and Group Head of Corporate Resources John Philip S. Orbeta said, “We at the Ayala group promised to give you an internship experience unlike any other—immersive, engaging, and challenging. After all, this is the Ayala way. For 185 years, our company has aspired to be a partner in nation building. Today, we continue to align our business objectives towards these aspirations. I believe this is what makes our internship program unique. We had no doubt that as the best in your class, you would not only be able to handle the difficulties of performing real work during your internship, but that you would also be able to explore innovative ideas that could make a difference to society. We are certainly proud that all of you have stepped up and delivered.”

Over the course of their six-week AGSIP engagement, the interns, representing the top 15% of the academic achievers in some of the country’s best universities, developed and pitched ideas to answer the brief of providing a sustainable solution that would improve the quality of life of an underserved market. Six out of 27 teams moved on to the final judging by a panel of Ayala executives, namely Toti Bengzon (Ayala Land Chief Financial Officer), Gabby Blaza (AC Industrials Strategy and Business Development Group Head), Jose Rene D. Almendras (Ayala Group Head of Public Affairs and AC Infrastructure President & CEO), Rodell Garcia (Manila Water Chief Technology Adviser), Vince Tobias (Ayala Head of Innovation), and the aforementioned John Philip S. Orbeta.

“The Ayala of today is very different from the one that existed a decade or two ago,” said Ayala Chairman and CEO Jaime Augusto Zobel de Ayala, who dropped by to congratulate the interns. “We need to reinvent ourselves to stay relevant among our customers and the communities we serve. And who better to look for reinvention than from people your age?”

At the first ever Ayala Group Interns’ Innovation League last July 12, 2019, winners (in photo L-R) Jose Karlo Pascual (University of Asia and the Pacific), Maria Betina Ramos (Ateneo de Manila University), Alexander Go Tian (University of the Philippines), and Joe Diether Cabelin (University of the Philippines) from Team Osena pitched “Paglago”, a B2B farm-to-kitchen platform that promotes sustainable practices. The team won P50,000, an immersion trip to the headquarters of an Ayala technology partner company, and job offers from the Ayala group. Ayala’s Chief Human Resource Officer and Group Head of Corporate Resources John Philip S. Orbeta noted there was no doubt that the program’s 120 interns would “be able to explore innovative ideas that could make a difference to society.” On looking to the emerging workforce to help keep a 185-year-old company relevant, Ayala Chairman & CEO Jaime Augusto Zobel de Ayala said, “The Ayala of today is very different from the one that existed a decade or two ago… Who better to look for reinvention than from people your age?”

At the first ever Ayala Group Interns’ Innovation League last July 12, 2019, winners (in photo L-R)
Maria Betina Ramos (Ateneo de Manila University), Alexander Go Tian (University of the Philippines), Joe Diether Cabelin (University of the Philippines), and Jose Karlo Pascual (University of Asia and the Pacific) from Team Osena pitched “Paglago”, a B2B farm-to-kitchen platform that promotes sustainable practices. The team won P50,000, an immersion trip to the headquarters of an Ayala technology partner company, and job offers from the Ayala group. Ayala’s Chief Human Resource Officer and Group Head of Corporate Resources John Philip S. Orbeta noted there was no doubt that the program’s 120 interns would “be able to explore innovative ideas that could make a difference to society.” On looking to the emerging workforce to help keep a 185-year-old company relevant, Ayala Chairman & CEO Jaime Augusto Zobel de Ayala said, “The Ayala of today is very different from the one that existed a decade or two ago… Who better to look for reinvention than from people your age?”

Porac, Pampanga — In ceremonial turnover rites held last June 29, 2019 followed by outreach activities in an evacuation center in Porac, Pampanga, the Ayala group and its partners completed a series of relief activities as part of its commitment to helping families severely affected by the 6.1-magnitude earthquake that struck the province on April 22.

To officially close out its two-month assistance efforts in the province, Ayala officials, led by Ayala Foundation President Ruel Maranan, ceremonially turned over donations consisting of construction materials to House Speaker Gloria Macapagal-Arroyo and outgoing Pampanga Governor Lilia Pineda at the Laus Group Event Centre in San Fernando, Pampanga.

Tasked to supervise the distribution of the construction materials for qualified families, the Provincial Engineers’ Office (PEO) had received the donations in the Pampanga’s Sindalan warehouse in full last May.

“On behalf of the Province of Pampanga, I extend my heartfelt gratitude for the construction materials (plywood, corrugated GI sheets, deformed bars) and other in-kind assistance you have selflessly extended in aid to the recovery of our people displaced because of the incident,” said Governor Lilia Pineda.

Aside from helping build and rebuild homes destroyed by the earthquake, Ayala has also conducted at least three outreach activities from April to June for affected communities. The first activity was held on April 26 in Floridablanca, in partnership with Manila Water Foundation, Clark Water, and the Apl.de.Ap Foundation, and reached 800 Aeta families. The second relief activity was held on May 4 in the Katutubo Village in Porac and served 300 Aeta families.

Another outreach activity reached affected families who are still in an evacuation center in Sitio Pangaranan, Bgy. Babo Pangulo in Porac, Pampanga. The June 29 outreach program was conducted by Ayala Foundation together with Manila Water Foundation, Apl.de.Ap Foundation, with additional donations of medicines from Generika.

“Ayala believes in sustained efforts to help improve lives,” says Maranan. “Our initiatives in earthquake-affected areas in Pampanga reflect our commitment to building resilient communities.”

“Ayala believes in sustained efforts to help improve lives. Our initiatives in earthquake-affected areas in Pampanga reflect our commitment to building resilient communities,” Ayala Foundation President, Ruel Maranan, said during a courtesy call to House Speaker Gloria Macapagal-Arroyo and Pampanga Governor Lilia Pineda last June 29, 2019 at the Laus Group Event Centre in San Fernando, Pampanga to formally close a two-month Pampanga relief effort conducted by the Ayala group and its partners to extend assistance to the families severely affected by a 6.1 magnitude earthquake that struck the province last April 22. In coordination with the LGU, construction materials were distributed to assist in the repair and rebuilding efforts while outreach activities were conducted from April to June helping over 1,600 affected families.
 
(L-R) – Joy Sanciangco (Ayala Land), Vice-Governor/Governor elect Dennis Pineda, Ruel Maranan (President, Ayala Foundation), Governor/V-Governor elect Lilia Pineda, Former President & House Speaker Gloria Macapagal-Arroyo and Boogz Baffrey of Manila Water.

Contact Information
 

Ayala Foundation
Celerina Rosales – Amores
Corporate Communications
Email: amores.cr@ayalafoundation.org

Ayala Corporation
May Florentino
Corporate Communications
Email: florentino.mpp@ayala.com.ph

Makati, Philippines – June 4, 2019 To Ayala Corporation (Ayala) Chairman & CEO Jaime Augusto Zobel de Ayala, the Future of Work in Asia Pacific is not just about new jobs, new skills, and new ways to work and learn. It is ultimately about motivating employees through purpose-driven work and driving productivity towards inclusive growth.

“Infusing our organizations and our people’s jobs with a deeper and higher purpose should be part and parcel of any discussion about the Future of Work,” Zobel said. He noted that today’s times “are challenging us to adopt a refreshed approach to enterprise—one that fully responds to the critical underserved needs of society, while at the same time enables the creation of value. This would allow our organizations to generate meaningful impact and imbue a higher purpose in people’s work, which would lead to increased productivity and engagement.”

As the first Philippine company to join the World Business Council for Sustainable Development, Ayala has aligned its strategies with the UN Sustainable Development Goals (UN SDGs) through the Ayala Sustainability Blueprint. This is a group-wide plan specifically designed to support the achievement of the UN SDGs by 2030, and to enable Ayala to tangibly contribute to three pillars where its businesses can generate the most significant and lasting impact. These are: access and inclusivity, productivity and competitiveness, and responsible growth and innovation. Through its sustainability blueprint, Ayala is able to institutionalize the creation of meaningful work that would channel its employees’ talents towards positive change, and ultimately, accelerate inclusive growth.

“As we continue these conversations and prepare for the future as individual companies and as a community of enterprises, let us keep in mind an important matter: we also have to create and offer purpose-driven work to our various teams. I believe that [if] we can properly harness technology, properly harness innovation, and properly harness meaningfulness, we will certainly contribute to a more progressive Philippines and Asia Pacific,” Zobel concluded.

As a region known for its low-cost and low-skilled labor, Asia Pacific will likely be facing socio-economic challenges and a growing number of workers displaced by automation and digitization. However, by harnessing, technology, innovation, and meaningfulness, Ayala believes that these developments could also introduce significant opportunities for a future workforce that is inclusive and positively impactful.

PHOTO CREDIT: Asia Society
“As we continue these conversations and prepare for the future as individual companies and as a community of enterprises, let us keep in mind an important matter: we also have to create and offer purpose-driven work to our various teams. I believe that [if] we can properly harness technology, properly harness innovation, and properly harness meaningfulness, we will certainly contribute to a more progressive Philippines and Asia Pacific,” Zobel said at the J.P. Morgan-Asia Society One Step Ahead Series last June 4, 2019 at Makati City.

Contact Information
Ayala Corporation
May Florentino
Corporate Communications
Email: florentino.mpp@ayala.com.ph