Ayala Group gears up to a low-carbon economy; strengthens commitment to TCFD

The Ayala group is coming strong in responding to the call for more effective climate related financial reporting with its business units signing as official supporters of the Task  Force on Climate-related Financial Disclosures (TCFD). Recognizing that climate change  is a universal challenge that could irreversibly devastate communities and organizations,  the Ayala group took deliberate steps in affirming its resolve, supported by initiatives to  protect and renew the environment. Now joining the more than 1,800 TCFD supporters  from 78 countries are Ayala Land Inc, Bank of the Philippine Islands, Globe Telecom Inc.,  AC Energy, Manila Water Co., and Integrated Micro-electronics Inc. – setting another  milestone for the group since its pioneering effort to report on TCFD disclosures in its  2019 Integrated Report.  

TCFD is a set of globally recognized recommendations by the Financial Stability Board  that encourages organizations to align their strategies and financial reporting to the risks  and opportunities associated with climate change. Adoption of these recommendations  helps companies build a more resilient financial system, based on more transparent  climate-related disclosures, risks, and opportunities.  

With this strengthened commitment, the newly signed-up business units of Ayala will  undergo a gap analysis against the four pillars of TCFD: Governance, Strategy, Risk  Management, and Metrics & Targets. Each organization will disclose according to the 11  recommendations and set up strategies that will ensure adherence to the four pillars.  Beyond helping investors, lenders, and insurers have a better view of the company’s  longevity and resilience, this will help Ayala navigate the financial landscape as it  transitions to a low-carbon economy.  

This bold step is in line with Ayala Corporation’s Sustainability agenda, one that is backed  by commitments of CEOs across the group:  

Ernest L. Cu, Globe President and CEO, emphasizes the responsibility they have in  ensuring they positively contribute to the environment as they serve their customers, “As  a sustainability leader, we are mindful of our impact on Filipinos and our society. That is  why we leverage our strong culture of innovation and use of technology to mitigate risks  to our business operations and protect the environment. Climate change is a global  concern that requires an 'all of nation' approach to manage its impact. In supporting  the Task Force on Climate-related Financial Disclosures (TCFD), Globe joins a robust  multi-sector international alliance to address climate-related risks through science-based  research, financial information, and disclosures. We invite our partner vendors, customers and the rest of our stakeholders to collectively join us in taking action on  climate change for a sustainable future." 

BPI President and CEO, Jose Teodoro “TG” K. Limcaoco, also expresses the bank’s  aim to further integrate sustainability in the business and encourages their stakeholders,  saying, “This ongoing pandemic magnified the importance of having a strategy to create  long-term value and longevity. BPI has contributed significantly to nation-building in the  past 170 years, and we are committed to continue our role in shaping a better Philippines  by integrating sustainability into our strategies and practices. We support the Task Force  on Climate-related Financial Disclosures (TCFD) as this will help us better understand  climate-related risks, and more importantly, put us in a better position to address and  mitigate potential risks and seize opportunities. We encourage all our stakeholders,  customers, and partners to commit to responsible business practices for a more  sustainable and brighter future."  

Manila Water President and CEO, Jose Rene Gregory D. Almendras, also sees TCFD  as an avenue to further engage with stakeholders and says, “Manila Water adopted a  climate change policy in 2007, even before a law was passed, because we knew we had  to commit to climate change adaptation efforts to ensure resilience towards situations of  ‘too much water’ and ‘too little water’ brought about by extremes in the water cycle. The  disclosure recommendations from TCFD will hopefully gain us more support from our  stakeholders in taking collective action to address this global issue.”  

Meanwhile, IMI President and CEO Arthur R. Tan says, “IMI has always been in the  forefront of pioneering ESG values in the manufacturing sector for the Philippines. As a  part of the global supply chain for the world’s top brands and products, we have been  complying and exceeding these requirements over the past decades. Our decision to  support the TCFD initiatives is a natural path for us to take and support.”  

In the field of real estate, Ayala Land President and CEO Bernard Vincent O. Dy¸  stresses the benefit of being a TCFD supporter and says, “As a real estate company  operating in the Philippines, Ayala Land has long recognized the importance of  responding to climate change. We welcome the Task Force for Climate Related Financial  Disclosures (TCFD) recommendations as these provide a clear framework on disclosing  material climate-related information. By adopting TCFD recommendations, the company  will have a more thorough understanding of climate risks and opportunities. We can then  continue to align our future investment strategies so that we can effectively transition to  a lower-carbon economy.” 

Speaking more about efforts toward a low-carbon economy, John Eric Francia,  President and CEO of AC Energy, reaffirms their commitment by saying, “AC Energy is  transitioning to a low carbon portfolio. The company will be divesting all its coal assets by  2030 and scaling up renewable investments, which is expected to exceed 5GW by 2025. In line with this commitment to sustainable investing, the company is adopting the TCFD  framework along with the Ayala group.” 

Ayala Corporation’s President and CEO, Fernando Zobel de Ayala, takes this joint effort  of the business units to support TCFD as a vital step in the group’s sustainability journey,  “This decisive effort of the Ayala group to collectively support TCFD is in line with our  aspiration to be a regional leader in the field. This is a common ground for our largely  diversified group, one that speaks of our continued commitment to transparency and  accountability. In light of the pandemic, we believe that our alignment with TCFD will help  make us a more future-ready Ayala.”  

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For more information: 
Yla Alcantara  
Head, Brand & Reputation Management  
Ayala Corporation  
e-mail – alcantara.ypg@ayala.com