We commit to improve the lives of Filipinos in a meaningful and lasting way. We do this following clearly defined pathways—access and inclusivity, productivity and competitiveness, responsible growth and innovation— towards 2030 mapped in the Ayala Sustainability Blueprint.
We align our desire to bridge societal gaps with the UN Sustainable Development Goals with the blueprint as a guide, valuing potential, reinventing businesses, and transforming communities.
We recognize the business units, our champions, and their respective SDG targets as we continue to address marginalization, untapped potential, and irresponsible growth issues. We review each champion’s strategies every two to three years to ensure relevance considering game-changing technologies and innovations, evolving needs, and complex situations in today’s customer-centered business world.
Building on the gains of being leaders in the field, incubating businesses that make up a resilient portfolio, and strengthening a risk-aware culture will accelerate our growth into a future-ready Ayala Corporation.
AFI has reached 70% of its target for its Sustainable Livelihood sites while currently developing indicators of poverty for areas of Youth Leadership and Education.
*percentage given is pre-Covid-19 situation
Manila Water continues to increase access as it expands to Calasiao (2018), Obando (2018), Bulakan (2019), and Tagum (2019). As of June 2020, Manila Water continues to increase access of water to new market as water connection grew by 10% from 2018.
* Audited figure as of 2019 is 6%
Currently, ACEN has ~1,300MW of renewable energy capacity* (26% of the 5GW target).
*Proforma – assuming the infusion of international assets into ACEN has already been completed.
Globe Telecom already reached 88% of its 2030 target [SDG9] of leading the country’s digital transformation by significantly increasing access to information and communications (ICT) for consumers and businesses, providing universal and affordable Internet access in the Philippines for 90% of the population.
(88% refers to Globe Telecom's mobile customers based in 2018 PH Population)
AC Infra remains steadfast in meeting the infrastructure needs of the country in a more efficient way. It’s rail business reached 10% reduction in energy and fuel consumption per year and an notable 50% reduction on paper, non-hazardous and hazardous wastes per year. Businesses in the logistics and financial infra sectors shall establish baselines and mechanisms to account for greenhouse gas emissions avoided and to improve operating efficiency to achieve a low-carbon footprint. AC Infra continues to evolve and invest in new technologies to reduce carbon emissions by 2030 and will revisit its target to ensure that it remains aligned with the dynamic changes in its organization.
Today, AC Motors’ six vehicle brands together carry in their individual global portfolios more than 30 models not fully dependent on a combustion engine powertrain. The entry of these models into the Philippines is highly dependent upon the enactment of an incentivizing national framework for new energy vehicles and the consequent unlocking of market demand. If such a framework were to come into fruition today, AC Motors’ multibrand lineup could potentially offer these vehicles, to such an extent that they could represent up to approximately 25% of our total product lineup.
IMI continues to deliver emerging technologies for automotive, smart energy, and connectivity solutions in 22 plants across the globe. Its current manufacturing value is at USD419 million, setting them on the road to achieve their 2030 target.
For Ayala Corporation , institutionalizing waste management programs that are relevant and responsive to the requirement of the business units while meeting the requirements of SDG 12 on waste management, is key. This is currently reflected through three strategies that are being implemented across the group – Reduction, Recycling and Recovery.
Furthermore, Ayala Corporation is working towards developing a group-wide waste reduction program whose goal is to develop practices and processes that can systematically address solid waste, therefore reducing waste that reaches landfills and pollutes our ocean.
In 2019, Project Kasibulan saw two cohorts and one new planting site at the Ipo Dam in Brgy. San Mateo in Norzagaray, Bulacan. The two cohorts were able to contribute a total of 4,959 Volunteer Hours to the 185th Year Celebration of Ayala Corporation.
To date, Project Kasibulan’s volunteer reforestation effort has planted 6,929 seedlings, and engaged 297 volunteers from across the Ayala Group.
In addition, the Mindoro Forest and Biodiversity Conservation Programme made substantial progress in 2019. The technical studies yielded key milestones in biodiversity assessment, carbon forest baseline inventory, and socio-economic assessment in the project area and its surrounding communities.
To support anti-poverty frameworks resulting in 50 percent reduction of extreme poverty in AFI project areas
To 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
To help ensure equal access for all women and men for 85 percent (1,258,095) of nonworking population (aged 15 to 24) to affordable and quality secondary and tertiary education, including university, through our own schools and helping other institutions
To help ensure equal access for all women and men for 85 percent (1,258,095) of nonworking population (aged 15 to 24) to affordable and quality secondary and tertiary education, including university, through our own schools and helping other institutions
To 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 percent above the industry average
To expand access to banking and financial services to 25 percent of the underbanked population of the Philippines (addressable C and D markets)
To 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 percent of the population
To upgrade infrastructure to make them sustainable, with increased resource efficiency and greater adoption of clean and environmentally sound technologies and industrial processes with 36,135 tons CO2 equivalent avoided
To enhance inclusive and sustainable urbanization by increasing sevenfold the number of launched affordable housing units
To increase its renewable energy portfolio to 5 GW in the Philippines and in foreign markets
To enable the first Philippine- manufactured, commercially viable, and marketaccepted electric vehicle, resulting in reduced emissions. For AC Automotive to promote low emission vehicles, ensuring that each brand offers a minimum of one model not fully dependent on a combustion engine powertrain. Globally and on the manufacturing side, for IMI to promote inclusive and sustainable industrialization by demonstrating manufacturing value add of US$1 billion across all developing countries where it has operations
To achieve an ambitious material footprint that demonstrates sustainable management and efficient use of natural resources
To strengthen resilience and adaptive capacity to climate-related hazards to natural disasters across all its sites resulting in minimal casualties
In 2020, the Philippines was hit by multiple economic shocks – the COVID-19 health crisis, restricted economic activities across the country due to quarantine measures, devastating typhoons in November, and the global recession. According to the World Bank1 , these events have shrunk the economy by 8.1 percent, and generated a poverty rate of 20.8 percent.
Poverty and inequality have been recurrent challenges in the Philippines, hindering the path to a stable economy and sustained growth and development of the country.
Ayala Foundation seeks to contribute to poverty alleviation by aiming to reduce extreme poverty in host communities. Using a holistic approach in the design and implementation of programs, Ayala Foundation works with partners and stakeholders on capacity building, production, and marketing to ensure that economic gains are shared with target communities.
Sustaining communities became even more important as the pandemic unfolded.
SUSTAINING COMMUNITY INITIATIVES
The community is front and center of solutions conducted on the ground, and community development became even more pronounced under the new normal. Ayala
Foundation strengthened its engagement with stakeholders, facilitating community development through leadership, education, and sustainable livelihood. With a vision of creating communities where people are productive, creative, self-reliant, and proud to be Filipino, Ayala Foundation’s programs are both inclusive and inspirational. No one is left behind. And communities are encouraged through meaningful programs to work for the good of the community and achieve shared goals.
Despite challenges brought on by COVID-19, Ayala Foundation’s community partnerships persevered with opportunities made available on new digital platforms. In 2020, various sustainable livelihood projects supported by the Ayala Foundation netted a community net income of ₱4.59 million.
Lio e-Lengke earned ₱1.78 million from sales of community products. Ayala Foundation maintains a community development program to support communities surrounding the Lio Tourism Estate in El Nido, Palawan. As a consequence of the pandemic, it became difficult to purchase goods outside Barangay Lio. Ayala Foundation helped create Lio e-Lengke and brought the local market online, facilitating the purchase of fresh produce from local farmers and community members across El Nido.
Pangkat Calauan earned ₱10.8 million from sales of community products. Ayala Foundation supports sustainable livelihood projects in a relocation site for families displaced by Typhoon Ondoy (2009) and the rehabilitation of the Pasig River in Southville 7 in Calauan, Laguna. These include the MDC Greens project, where farmers grow ornamental plants that are supplied to landscape projects of Ayala Land. In 2020, the community generated ₱2.3 million for Calauan, as well as ₱8.5 million through BuyAni. An effort that began in 2017, the BuyANI Fresh Produce Market allows buyers to purchase goods directly from farmers. This direct line from farmers and agribusiness owners to restaurants and consumers became particularly important during the pandemic, and was facilitated through BuyANI fairs in various Ayala Malls.
The Iraya Mangyan Community earned ₱577,000 from online sales of woven products. Ayala Foundation supports the indigenous Iraya-Mangyan community of Talipanan, Puerto Galera, Oriental Mindoro through education and skills training. A particular focus of interest is the development of a livelihood and skills program on weaving and the creation of functional but highly artistic nito baskets. Moving transactions onto the digital landscape allowed the community to benefit from the sales of their products despite the pandemic.
The Tuloy ang Biyahe Program earned ₱1.4 million for displaced drivers. Converting jeepeneys into rolling stores, the project aimed to provide an alternative income to a vulnerable and volatile sector of the community grappling with the pandemic, and stimulate economic activities at the community level. The project secured protection against COVID-19 for the community by ensuring that protocols to protect the displaced drivers from the virus were in place. It also fostered synergy among the Ayala group and its ecosystem as the Ayala Coop provided the financial muscle, Ayala Foundation with the framework, and the Ayala Business Circle with local infrastructure.
While the anxiety of contracting the virus remained within the community, these endeavors yielded more positive outcomes for community partners. The wider network and new ways of delivery increased partners’ organizational capacity. These activities sustained the presence of Ayala Foundation during the pandemic. With the urgency of addressing people’s needs during this unprecedented crisis, the support provided by Ayala Foundation increased social inclusion and generated higher satisfaction in helping others, while also developing a greater sense of community.
As we move towards economic recovery, Ayala Foundation will continue to provide innovative solutions, improve services, and ensure that target communities maintain incomes to support their families.
Community net income
Lio e-Lengke sales of community products
Pangkat Calauan sales of community products
Iraya Mangyan Community online sales of woven products
Tuloy ang Biyahe Program for displaced drivers
Access to healthcare became a primary concern of people across the world given the severity of COVID-19. Additional complications, such as maintaining physical distance, increasing sanitation measures, and restricting movements particularly of those with vulnerable medical conditions, however, needed to be addressed to minimize risk of contracting the disease. The expansion of Healthway, the integrated clinic arm of Ayala Healthcare Holdings, Inc. (AC Health), proved to be beneficial in the crisis. AC Health also developed a comprehensive COVID-19 response, strengthened the online delivery of medical services, and converted medical facilities to address urgent COVID medical issues.
Healthway offers quality, accessible, and affordable healthcare services, covering primary to multi-specialty care. Healthway Medical expanded its network to over 100 Family, Multi-Specialty, and Corporate Clinics, and is the largest network of clinics in the country. In line with this expansion, Healthway unveiled its new brand on September 16, 2020 at its Healthway Multi-Specialty Center in Market! Market!.
Expanding Healthway helped create more synergies to adjust to the new normal. This includes innovating services, bringing healthcare directly to patients’ homes, and ramping up care for COVID and other health concerns. This allows AC Health to better serve its target communities even in times of extreme disruption.
services and diagnostics
AC Health leveraged its integrated healthcare ecosystem to provide quality, affordable, and accessible healthcare for Filipinos amidst the crisis. The company prioritized COVID-19 response initiatives by extending frontline care, expanding testing efforts, and providing accessible treatment. AC Health mobilized its full range of services, from drugstores to hospital operations, to address the wideranging medical needs that required immediate and urgent attention.
TELEHEALTH AND MEDICINE DELIVERY
The pandemic disrupted healthcare system and fostered a re-imagination of medical services in the country. To encourage both medical professionals and patients to embrace online healthcare, AC Health’s Vigos Health and Globe’s 917Ventures developed HealthNow, an all-in-one app that offers telemedicine consultations, online medicine ordering and delivery, and clinic and diagnostic testing booking.
HealthNow allows doctors to attend to patients anytime and anywhere, assuaging the fears of patients who used to congregate in crowded clinics while waiting for their doctors. Easier access to patients help doctors extend their services to a wider number of patients. It supports the continuity of care, as the pandemic closed down clinics, transportation, and delayed medical consultations, which is critical for patients who need constant and regular attention from medical professionals. Recording medical information is eased with the free use of the Electronic Medical Record for medical charting, e-prescription, and doctor and diagnostic referrals. Doctors can also use a schedule management tool for virtual and in-person appointments.
People can then safely purchase vitamins and medicine through Generika Drugstore. In line with its aim to empower Filipinos by providing access to quality and affordable generic medicines, Generika launched its medicine delivery app to allow clients to avail of its products online. The app allows customers to purchase healthcare essentials from the safety and comfort of home and have them delivered straight to their doorstep.
Recognizing that testing is a critical aspect of a comprehensive COVID-19 response, AC Health partnered with the Aboitiz Foundation, ABS-CBN Corporation, Alfonso Yuchengco Foundation, Gokongwei Brothers Foundation, and Metrobank Foundation to build four Biosafety Level 2 modular laboratories in Qualimed Health Network hospitals across the country. The innovative and efficient modular set-up, designed and built by Makati Development Corporation, will accelerate construction timelines for other laboratories.
Separately, these private sector giants contributed both financial and in-kind contributions to national COVID-19 efforts in the form of personal protective equipment and other medical supplies, and care packages for communities that became even more vulnerable due to the pandemic. The consortium shows a united commitment to battling the pandemic and ensuring the country’s swift recovery. It was formed to contribute an additional capacity of 5,500 confirmatory RT-PCR tests per day to support Project T3 (Test, Trace, Treat) of the Department of Health and the Inter-Agency Task Force.
COVID-19 REFERRAL HOSPITAL
In addition to offering a wide range of services to address COVID-19 and other medical needs, AC Health partnered with Qualimed Health Network to convert Qualimed Sta. Rosa, Laguna into a COVID-19 Referral Hospital. The hospital already offers a wide range of comprehensive outpatient and inpatient healthcare services. Conversion to a COVID-19 referral hospital would better address the needs of the increasing number of COVID-19 patients accommodated at the hospital.
The partnership came at a crucial time and sought to address the demand for COVID-19 specific facilities, bringing hope and much-needed healthcare services to more Filipinos. The COVID-19 Referral hospital incorporated specific features that are compliant with infection control standards to ensure the safety of patients and medical professionals. A COVID-19 triage holding area was constructed adjacent to Qualimed Sta. Rosa to isolate patients prior to admission. A Biosafety Level 2 Laboratory was built to facilitate COVID-19 testing. Inpatient beds were converted and ICU beds were expanded for the exclusive use of COVID-19 patients. The hospital also generated the support of the medical community to form a dedicated team of medical professionals, which include volunteer clinical staff from the broader Qualimed and Healthway networks.
DEVELOPMENT OF FIRST CANCER SPECIALTY HOSPITAL
To ensure that other urgent medical issues continue to be addressed despite the pandemic, AC Health inked a strategic partnership on October 13, 2020 with Cancer Treatment Services International (CTSI), a Varian company, to develop and operate the first comprehensive cancer specialty hospital in the Philippines.
Cancer continues to be a leading cause of death in the Philippines, and treatment for cancer patients, who are vulnerable to COVID-19, has become increasingly complicated. A cancer specialty hospital will bring much-needed affordable quality cancer care services to more Filipinos, as well provide a safe space for patients who need urgent care in the midst of the pandemic.
AC Health aims to invest ₱2 billion into the facility, which will have 100 beds, diagnostic equipment, chemotherapy facilities, linear accelerators for advanced radiation therapy, and operating rooms. The cancer specialty will be centrally located at FTI Complex, Taguig City adjacent to Ayala Land’s Arca South, to provide greater access to Metro Manila residents, as well as patients who will be flying in from the provinces.
AC Health repurposed Healthway Medical Greenbelt 5 into a cancer specific unit to serve the needs of oncology patients. Compliant with Department of Health regulatory and safety standards, the Chemotherapy Infusion Center at Healthway Greenbelt 5 accommodates up to 15 cancer patients for chemotherapy per day.
During the crisis, AC Health quickly expanded and transformed critical health services and showed its commitment to ensuring the health and well-being of the Filipino people.
In a report published by the National Economic Development Authority (NEDA) and UNICEF Philippines, despite achieving status as a middle-income country with sufficient resources to fund children’s education, many Filipino children are still deprived of opportunities to learn. Access to education, the quality of education they receive, and the condition of their learning environment are among the challenges highlighted in the report.
At Ayala, we view lack of access to quality education as a strategic area of work as it delivers multiple impacts in the development areas of poverty alleviation and human capital building, which are important to our businesses. We have thus been investing in educational institutions, serving thousands of students, mostly within the 15 to 24 age range. Our steadily growing portfolio covers primary, secondary, and tertiary educational formats.
LEARNING DURING THE PANDEMIC
With the pandemic shifting students away from the classrooms into online learning, the World Economic Forum estimates a staggering 1.2 billion children across 186 countries are currently affected by school closures. In October 2020, around 24 million Filipino students returned to school, albeit online, as face-to-face lessons remained suspended due to COVID-19. Mapua University (Mapua) is leading the digital charge for the iPeople Group at the tertiary level, with the university now using several online learning tools. Among these tools is Cardinal EDGE Learning Management System, which holds synchronous lectures to 2,300 students; a video platform called Panopto for higher education; and Coursera, an online learning platform. Mapua also offered students with online access to the library and counselling services. The Commission on Higher Education recognized Mapua as one of the leading universities in online learning
In 2020, APEC Schools tapped Globe Telecom (Globe) as its partner for online learning. APEC tapped Google Chrome management console provided by Globe to ease up distribution of learning applications and materials across students’ Google accounts. With the web-based application and the availability of Google Chromebooks, students and parents can freely use Google Classroom and G Suite tools to participate in online classes, fulfill assignments, and seek assistance from teachers anytime, in the safety of their homes.
Malayan Colleges Laguna (MCL) and the Malayan High School of Science (MHSS) conducted online classes through the Blackboard Learning Management System, while National Teachers College (NTC), Malayan Colleges Mindanao (MCM),applied distance and remote learning strategies to reach their students.
The agile pivot to digital and online learning enabled the iPeople Group to keep in step with the times while ensuring the safety of its students, teachers and personnel.
COMMITMENT TO QUALITY EDUCATION
Despite these limitations, the iPeople Group continued to provide quality and affordable education despite the pandemic. As of December 30, 2020, a total of about 24,000 undergraduate and graduate students were enrolled in Mapua University, Malayan Colleges Mindanao (MCM), Malayan Colleges Laguna (MCL), University of Nueva Caceres (UNC), and National Teachers College (NT). More than 10,000 senior high school students were recorded enrolled in the Malayan High School of Science, and almost 9,000 junior high school students were enrolled in NTC, UNC, MHSS and in the APEC Schools.
In 2020, over 9,000 graduates from Mapua University, MCM, MCL, MHSS, NTC, UNC and APEC Schools was tallied, despite there being no physical graduation exercises due to the limitations imposed by the IATF. Virtual graduations were conducted in the last quarter of the year for Mapua University and MCL.
Mapua conducted short-term technical courses, seminars and capacity building, and designed buildings for public schools that contributed to the general welfare of the community.
STRENGTHENING INCLUSIVITY AND ACCESS
The COVID19 crisis surfaced the most appalling inequalities that continue to exist in society today. The education sector is no stranger to this widening disparity exacerbated by slow human development, persistent poverty, and uneven growth across regions.
In a bid to bridge this gap, the whole iPeople Group caters students from different backgrounds. It caters mostly to students from the C2 Segment (31.36%), or those whose monthly household income is between ₱25,000 to ₱64,999. This is followed by the students from the AB Segment (22.30%), or those whose monthly household income is at ₱135,000 and above. Coming in third and fourth are students from the D (18.94%) and C1 (18.52%) Segments, respectively. The D Segment is characterized by students from households with a monthly income of ₱10,000 to ₱24,999, while the C1 Segment are those from households with a monthly income of ₱65,000 to ₱134,999. Finally, 10.20% of students come from the E Segment, or those from households with incomes of below ₱10,000.
Mapua University launched the D-HIVE & VAPERS eSalba system and app for risk reduction, including monitoring for disease outbreak for Marinduque in August 2020.
Mapua also collaborated with the Department of Science and Technology (DOST) and the Philippine Council for Industry, Energy and Emerging Technology Research and Development (PCIEERD) on the Universal Structural Health Evaluation and Recording (USHER) System to improve earthquake preparedness in the country. This led to the establishment of USHER Technologies, Inc., a spin-off company created under the DOSTPCCIERD Funding Assistance for Spinoff and Translation of Research in Advancing Commercialization (FASTRAC) project. The USHER system’s Intellectual Property is owned by Mapua (patent is pending), and is licensed to USHER Technologies, Inc. for commercialization.
UNC in Naga City, conducted Project Oragon, which focuses on literacy, arts, and livelihood for 90 pupils and beneficiaries.
iPeople will continue to drive innovations, anticipate emerging issues, and ensure access to quality education to help transform to a more sustainable economy and society.
The Manila Water Company (MWC) continues to ensure water access and availability and increase sewerage coverage and capacity for its customers to fulfill its mandate and contribute to achieving SDG 6 on Clean Water and Sanitation. Manila Water houses the East Zone Concession (Manila Concession) and sustained near 100 percent water availability to customers despite the challenges posed by the pandemic.
This year, Manila Water laid out approximately 8,000 kilometers of water pipes. This underscored the company’s commitment to ensuring improved water infrastructure throughout the Manila Concession East Zone. Billed connections increased slightly by 1.8 percent this year due to the entry of additional business units. Non-revenue water increased to 12% in 2020 due to challenges encountered in real-time adjustments of pressure and leak detection due to limited mobility during the pandemic. Despite these challenges, however, very little change was observed in terms of water delivered from the past year, a testament Manila Water’s promise of providing equitable, reliable, and safe drinking water to its communities.
Manila Water closed a number of deals, including water supply and sanitation facilities for the San Jose City Water District in Nueva Ecija, as well as a Management, Operations, and Maintenance Contract with Saudi Arabia’s state-run water agency, the National Water Company. The joint venture agreement between Manila Water Philippine Ventures Inc., Tubig Pilipinas and the San Jose City Water District covers the design, construction, rehabilitation, maintenance, operation, financing, expansion and management of the water supply and sanitation facilities and services in San Jose City.
The seven-year agreement with Saudi Arabia’s state-run water agency includes the implementation of enabling projects and the management of the water and wastewater facilities and systems of the North West Cluster which includes the cities of Madinah and Tabuk. This endeavor shall cover 300,000 square kilometers of land area, reaching more than three million people.
ADDRESSING CLIMATE CHANGE
As a water supply and distribution company, Manila Water is cognizant of the risks posed by climate change to its operations and clients. MWC formalized a Climate Change Policy in 2007 to address operational risks from climate change. It has been reviewed and revised to align climate change mitigation and adaptation strategies with national policies and the SDG on Climate Action.
Manila Water facilities were assessed on their vulnerability to climate-related events, specifically in relation to typhoons with more than 220 kph sustained winds, flooding, and drought due to El Niño. These assessments provide inputs to resiliency improvement projects of business units, and strengthens the company’s disaster risk reduction and management capacity. MWC also ensures immediate recovery and continuity of business operations through a Business Continuity Management Framework comprising Risk Management, Incident Management, and Business Continuity Management.
MWC programs include implementing energy efficiency initiatives, using renewable energy, and expanding wastewater coverage to avoid methane generation from septic tanks. The company also undertakes tree nurturing to protect and enhance watersheds and help in carbon sequestration. Since the start of Manila Water’s reforestation initiative, the company has planted a total of 1,188,020 trees in its critical watersheds.
COMMITMENT TO SAFE WATER SUPPLY
In January 2020, Manila Water expressed its commitment to ensuring access to a safe water supply by pledging support to the Adopt-an-Estero program of the Department of Environment and Natural Resources (DENR). Manila Water responded to the DENR’s goal of cleaning the San Juan River by entering into a Memorandum of Agreement (MOA) with the DENR and local government units of Quezon City, San Juan City, and Mandaluyong City to fully implement the clean-up and rehabilitation of the river and its tributaries.
The event also marked the signing of the updated usufruct agreement between the DENR and Manila Water for the upgrading of the East Avenue Sewage Treatment Plant in Quezon City. Manila Water will be building more sewage treatment facilities and expand sewer networks as part of its overall wastewater roadmap for the East Zone. The company recently embarked on the second leg of the Adopt-an-Estero project with the construction of the Aglipay Sewage Treatment Plant (STP) in Barangay Old Zaniga, Mandaluyong City.
The Aglipay STP is the 42nd sewage treatment facility of Manila Water in Metro Manila’s East Zone, and will have a treatment capacity of 60 million liter per day (MLD) of wastewater to be collected from 2,115 hectares of catchment area spanning across Mandaluyong, San Juan, and Quezon Cities. The facility’s capacity is expandable up to 120 MLD after the complementing network of 53 kilometers of sewer lines is completed. The Mandaluyong West Sewerage System is designed to serve a population of up to 652,000.
These and other activities signify Manila Water’s continued support for the government’s environmental initiatives to clean Metro Manila’s waterways and rehabilitate Manila Bay. It will also help achieve shared goals in urban development and environmental protection.
MANILA WATER’S COVID-19 RESPONSE
Manila Water adopted water access, sanitation, and hygiene (WASH) as a core advocacy with the aim of bringing WASH to marginalized communities. This participatory intervention aims to provide access to clean and potable water and improve sanitation facilities and hygiene practices.
MWC ramped up its WASH program and provided hygiene facilities, supplies and education to communities and institutions to address the threat of COVID-19 and support the government’s health and safety protocols.
We will continue to provide quality services and educate the public on environmental protection, address climate change, and engage our stakeholders to maintain a safe and secure water supply.
In 2020, quarantine and lockdown measures due to the pandemic led to disruptions in the economy and large scale closures of industries. This created huge drops in energy demand. Of the country’s three main island groups, Luzon experienced the biggest load drop, with demand falling by almost 40 percent to 4,516 megawatts (MW) in March 2020 and a further drop to 4,289 MW in April. According to the Department of Energy, electricity demand fell by 30 percent in Luzon, 17 percent in the Visayas, and 25 percent in Mindanao.
As a result, grid operators looked for ways to adjust to the dramatic decline in power demand. This also raised questions on the future of energy, and the volume and type of power that is best suited for the future. According to the Institute for Energy Economics and Financial Analysis, the government now has an opportunity to redesign the energy market and explore low-cost technologies to drive down power costs. Revisiting green strategies provide the potential to end dependence on imported fossil fuels and reduce long-term power costs.
USHERING IN A LOW CARBON FUTURE
This opportunity borne out of crisis bodes well for companies such as AC Energy (ACEN), the Ayala Group’s energy platform, which is moving closer towards its goal of contributing to a low carbon future by increasing renewable energy sources in local and foreign markets.
In 2020, AC Energy worked towards enhancing its renewable energy portfolio. Under ACEN, renewable energy capacity is pegged at ~490 MW, with ~1,400 MW in international markets. In terms of attributable output, 41 percent of the group's attributable generation came from renewable sources.
ACEN has also embarked on new local and international renewable energy projects. In the Philippines, the 120 MW Alaminos and 60 MW Palauig solar farms are expected to be operational by mid-2021. In the international front, ACEN started construction of more than 340 MW of solar and wind projects in Vietnam. It also commenced projects with ~690 MW of solar capacity in Australia and India.
In early 2020, AC Energy Philippines announced the investment of an affiliate of GIC Private Limited (GIC), Arran Investment Pte Ltd, in ACEN valued at ₱20 billion. This infusion will enable ACEN to move faster towards its target of being one of Southeast Asia’s top renewables platforms.
AC ENERGY’S ENVIRONMENTAL & SOCIAL POLICY
Going beyond environmental management and social development, AC Energy strengthened its commitment to sustainability and social responsibility through the publication of its Environment, Social and Governance (ESG) Policy. The company launched its first green bond offering, and with it, the development of the development of its Environment and Social Management System.
Through the ESG Policy, AC Energy aligns itself with the United Nations Framework Convention on Climate Change and the Paris Agreement. It also solidifies the company’s commitment to the UN SDG’s by protecting the environment and creating value for the communities in its areas of operation.
The policy also underscores AC Energy’s intention to achieve a low carbon portfolio by 2030 by taking measures to prevent, minimize, and control its direct greenhouse gas emissions by scaling up renewable energy investments, leveraging new technologies, and limiting thermal energy production.
Driven by its commitment to a low-carbon future and corporate responsibility, AC Energy’s rapid growth in the power generation sector shall propel it towards achieving renewable energy portfolio of 5 GW by 2025.
AC Energy's efforts to diversify into renewable energy will also future-proof its portfolio as the world transitions into a low-carbon future.
Attributable renewable energy generated
Ayala seeks to be seen as a partner in achieving their employees’ life aspirations. Employees are supported throughout their tenure as employees at Ayala Corporation, from recruitment to separation, ensuring that they have a meaningful career in the company while remaining accountable for their work.
The pandemic further strengthened the resolve of Ayala to sustainably engage its employees. Continuity is at the forefront of the mindset of the management, ensuring that the needs of employees are supported in the midst of these challenging times, and that adverse effects on the workforce population are minimized as much as possible.
Across the group, senior management fully supported the implementation of remote and flexible work arrangements. The skeletal workforce that needed to continue to report to their offices for businesses in utility industries were given due care and protection to minimize exposure to the virus. Ayala strictly follows IATF regulations in ensuring safety in the workplace.
Ayala enhanced employee welfare by offering teleconsultations in health programs and providing hotlines to address COVIDrelated concerns. Ayala Corporation also gave employees basic medical necessities including vitamins, face masks, alcohol, and others.
Despite the pandemic, the number of engagement activities did not dwindle. Across the group, innovative social activities were conducted online, including regular game nights, online mini-concerts, and exercise sessions. These and other activities highlight the importance of health and wellness in maintaining a balanced quality of life.
Training opportunities soared in 2020 due to online trainings and webinars that were offered across the group. A variety of learning events and materials were extended to employees, from those that would improve the performance of tasks, to skills development, and other fields of interest. The learning and development group also increased and strengthened sessions on mental health awareness, acknowledging the fact that many individuals are challenged by abrupt changes in their lives at the onset of the pandemic.
Across the group, Ayala ensured that employees continue to receive competitive compensation and benefits packages. In unique cases where employees were rendered redundant due to the decrease
Before the pandemic, Ayala provides multiple group-wide learning events for its employees
in market demand as an effect of the pandemic, their respective human resources units provided assistance in finding other opportunities. Overall, Ayala is still able to maintain its target and provides remuneration that is above 10 percent of the industry average.
Throughout the year that was beset with challenges, Ayala continued to support its workforce composed of Direct Hires and Support Staff. Although the number of support staff significantly declined in 2020, Ayala's total job generation remained high at over 100,000.
The pandemic highlighted the value Ayala Corporation accords to its employees. Aside from striving to ensure continuity of employment, Ayala pivoted from usual practices and explored creative ways to keep employees motivated. Meaningful programs helped maintain productivity, and generated volunteer support for more affected communities. At this most challenging time, Ayala delivered on its promise to sustain growth opportunities for its staff and contribute to closing the underemployment gap in the country.
Despite the financial setbacks due to challenges of the pandemic, Ayala's remuneration remains above 10 percent of the industry average. Overall, Ayala remains committed to providing full, productive employment and decent work and contributing to the country's economic recovery.
Ayala provides meaningful work to its workforce across various levels.
BPI helps Filipinos with little to no access to formal financial services to improve their productivity and quality of life. BPI sees this service as an opportunity to grow its market while contributing to poverty alleviation and human development.
It supports self-employed microentrepreneurs (SEMEs) through BPI Direct BanKo, which presents an alternative to traditional money lenders as it grants business loans based on well-grounded credit parameters and provides quick turnaround times. Keeping true to its mission of empowering Filipino entrepreneurs and providing financial services to the underbanked and underserved, significantly increasing the number of SEMEs reached in 2020.
With the accelerated efforts of BanKo, it obtained 16 percent of the market share in less than three years and is now the second biggest microfinance bank in the Philippines. It is now present in more communities with over 300 branches located across 71 provinces and has released ₱11 billion in loans, serving 96,000 active borrowers. Notably, the primary product of the bank called NegosyoKo loan has helped microentrepreneurs across different categories. This type of microloan has assisted individuals from wholesale and retail trading in market stalls and sari-sari stores, manual services, food services, manufacturing, and agriculture. To fully support SEMEs, the bank also offers InsuranceKo with BPI/MS as the insurer. This is a personal micro insurance product that helps protect entrepreneurs from unexpected detrimental events.
Another product that BanKo provides is called PondoKo, an interest-bearing savings account with no maintaining balance. Through this, customers can conveniently conduct transactions such as Buy Load, Send Money, Pay Bills, and Pay Loan via BanKo Mobile. The PondoKo Savings Account is now accessible through both Google Play and Apple Store.
BPI also continues to help businesses that help mitigate the effects of climate change or contribute to the global goals through its Structured Finance Division (SFC) loans and Sustainable Energy Financing (SEF) loans. Moreover, particular loans were disbursed for projects related to sustainable energy, agribusiness, affordable housing, infrastructure development, mass transportation, nutrition, health, and wellness especially for medical equipment, education, and water and sanitation systems
BanKo is a trusted partner of self-employed microentrepreneurs (SEMES).
Currently, BPI is at 5 percent of its 2030 target. BPI focuses on building the digital infrastructure and systems needed to achieve its 2030 target of serving the underbanked Filipinos. Financial inclusion strategies in the past few years have yielded positive results, and BPI aims to scale these further to meet its commitment of reaching 25 percent of the underbanked population by 2030.
The economic ramifications of the pandemic have led to jobs lost and increased poverty,creating a greater need for our financing services. We will continue to expand our banking services, maintain targets in responsible growth and innovation, and contribute to shared goals in decent work and economic growth.
Number of SEMEs reached72% increase compared to last year's 85,000
SEF Total 2020 disbursed loans
Number of SEMEs reached62% increase compared to last year's ₱11,130,000,00
SFD 2020 disbursed loans
Out of a 110.3 million Filipino population, 73.91 million Filipinos use the internet, with internet penetration in the country pegged at 67.01 percent.1 A reliable internet connection is now considered a requirement to productivity due to COVID-19, presenting tremendous opportunities for the telecommunications industry.
The pandemic generated a global demand for internet connectivity as digital platforms provided safer alternatives to physical and onsite business transactions, work, education, and traditional modes of communication. Globe Telecom stands by its commitment to providing internet access to Filipinos and expanding access to innovative digital solutions by increasing investments in infrastructure and offering a wide range of digital platforms that have become necessary under a new normal.
INVESTMENTS IN INFRASTRUCTURE
Globe is close to its 2030 target and continues to respond to the demand for increased internet connectivity by investing ₱60.3 billion in capex in 2020, an increase of 18 percent compared to 2019. Majority of the capex (86 percent) went to data-related requirements to meet the growing data demands of Filipinos. As of 2020, Globe has over 76 million mobile customers and close to 4 million broadband customers nationwide.
Globe Telecom fully expects to push capex spending to record levels in 2021 to execute an aggressive roll-out strategy to build on 2020 accomplishments in modernizing the network and making internet connectivity increasingly accessible across the country. Despite the pandemic, Globe Telecom built new cell sites, upgraded sites to Fourth Generation/Long-Term Evolution technology (4G/LTE), fast-tracked fiberization, and expanded 5G technology and availability to more Filipino homes nationwide.
Globe’s unrelenting efforts in enhancing digital connections have been validated by increased mobile consistency scores. Independent analytics firm Ookla® reported increases in the company’s overall Consistency Score and regional Consistency Score.
IMPROVING DIGITAL PLATFORMS
The COVID-19 pandemic accelerated the shift to a digital landscape, opening up online business opportunities and increasing the use of Globe Telecom’s mobile wallet GCash. This invited a fresh capital infusion of over US$175 million to spur the growth of financial inclusion and digitization of payments and financial services in the Philippines.
With entrepreneurs moving their business online, GCash retail and social partner merchants jumped 700 percent, from 75,000 in 2019 to 600,000 in 2020. GCash proved critical during the pandemic, as it offered essential services that ensured the safety and security of financial transactions despite COVID-19. Aside from making payments, GCash users can buy load, get insured, save money, borrow money, buy game credits, and even play games. The holistic app also facilitated fundraising through GCash for Good, where GCash users donated more than ₱40 million to assist those affected by COVID-19 and typhoons near the end of 2020.
GLOBE’S COVID-19 RESPONSE
While COVID-19 created serious impacts on business operations, Globe showed its commitment to serve the Filipino people by continuing to support the needs of customers in the new normal. Globe introduced GlobeOne, Globe At Home, and TM apps, and digital assistants on Facebook Messenger. These helped customers save time and effort with answers to most frequently asked questions. In the event that customers want to speak to a Globe representative, customers can report their concerns to GlobeOne or Globe At Home apps, or the hotline’s interactive menu.
Globe launched the School Bus WiFi program in October 2020, a new, bigger vision of Globe’s KonekTayo WiFi that aims to provide fast, reliable, and low-cost home internet connectivity in underserved markets. Globe distributed 289,000 SIM cards to public school students and teachers in Manila where they could use the KonekTayo WiFi service for free for the first hour. The School Bus WiFi campaign supports school bus operators who lost their livelihood due to the pandemic. The project allows students or people who work from home to avail of the KonekTayo WiFi service for as low as ₱15 a day.
Globe collaborated with Microsoft to maximize digital education through Microsoft Office 365 solutions. This provided educational institutions with stable, reliable, and secure platforms to maximize digital learning through the health crisis.
In partnership with New Good Feeling Mindstrong, an organization that provides free counseling and psychotheraphy services, Globe provides access to HOPELINE, the 24/7 suicide prevention and crisis support desk. HOPELINE can also be found under AC Health’s HealthNow app, under the Urgent Help button on the welcome page.
Globe's efforts inspite of the pandemic continued to enhance customer experience, thereby supporting the Filipino digital lifestyle.
Globe’s network investments likewise prove its strong support of SDGs, particularly UN SDG 9, which highlights the roles of infrastructure and innovation as crucial drivers of economic growth and development.
The Philippines is the thirteenth most populated country in the world. As an archipelago of 7,107 islands, with more than 110 million people, the lack of infrastructure has always challenged the transport and logistics sector of the country. With the government’s infusion of ₱682.3 billion into infrastructure development in 2020, the Philippines is projected to improve transport and close the infrastructure gap in the coming years.
This is seen to ease the flow of people, goods, and services in the country as it strives for a productive economy, especially as it deals with the effects of the pandemic.
AC Infra invests in strategic projects to meet the growing infrastructure needs in areas of mass transportation, logistics, and urban mobility primarily through publicprivate partnerships. AC Infra continued to set milestones towards its target while supporting efforts to address the impacts of the COVD-19 to society and the economy.
2020 was a year of significant growth and learning for Entergo, AC Infra’s logistics company. The COVID-19 crisis has challenged businesses to an extent that has never been seen before by any industry, and the company positioned itself a key enabler for bridging entrepreneurs with the consumers. With more people turning to online shopping due to pandemic restrictions, Entrego was able to capitalize on the growing demand from big e-commerce websites while also providing logistics infrastructure to fledging micro, small and medium enterprises, community-based businesses, and environmental initiatives.
Entrego tapped into the corporate social responsibility field as well, helping AC Infra’s RecoveREADS project by delivering educational kits to students, and supported Ayala Foundation’s Project Pananagutan by delivering care packages to no work-no pay talents of partner companies as well as frontliners and partner communities. Entrego also delivered relief packages to TODA members of Southville 3, in partnership with Lawson, MCX, and the Southville 3 Youth Council.
This year, it also began to chart its GHG emissions, and will have a full baseline of data ready for 2021. Monitoring their emissions shall help shape policies to reduce the company’s environmental impacts and contribute to the attainment of SDG 13 on Climate Action.
Disruptions in mobility caused by the limitations imposed by the IATF affected business operations. LRMC took this opportunity to set-up systems that will ensure safety of the riding public once the lockdown was lifted. This downtime also afforded them the opportunity to improve customer service, apply preventive and corrective maintenance works on all their train units, upgrade their signaling system, and launch the Bayad Center Payment System as an added payment option for the safety of their customers during the pandemic. Construction of the LRT-1 Cavite Extension is in full swing, applying world class technology to the much-awaited project. For the first phase of the project, a total of 203 pi-girders, chief horizontal support in a structure, will be installed using an aboveground launcher, and is able to install a pigirder every 1-2 days until January 2022.
The first of its kind in the Philippines, this engineering method allows for more efficiency resulting in quicker implementation and minimal impact on ground-level traffic. The other pi-girders are expected to be installed on-ground using straddle carriers and cranes.
AF Payments, the company behind the Beep card, offers a contactless payment platform called beepTM which can be used for rail, bus, retail, and tollway transactions. The company continues to work closely with the Department of Transportation (DOTr) and public transport operators to improve cashless transactions for jeepneys and buses to promote the safety and well-being of the riding public especially during the pandemic. AC Infra remains committed to meeting the infrastructure needs of the Philippines in a safe, sustainable and efficient way.
AC Infra will move forward with programs to ensure resource efficiency in its transportation and logistics systems and promote urban mobility for a cleaner and safer environment.
Entrego enabled entrepreneurs at the height of the pandemic.
Light rail vehicles
Average train cycle time in minutes
Card rail transactions
Single journey card transactions
Bus fare transactions
As public awareness on carbon emissions and their impact on the environment grows, so does the consumer’s interest in electric vehicles (EV). The Department of Trade and Industry is projecting that EV’s will account for 21 percent of total vehicles on the road in the Philippines by 2030, with plans of becoming the third auto manufacturing hub in the ASEAN, and a global manufacturing hub for low-cost transportation and commercial vehicles.
With these innovations and sustainable mobility-based technologies in the horizon, Ayala is well-positioned to participate in the manufacturing segment through AC Industrials. AC Industrials is Ayala Corporation's holding company for current and future investments in industrial technology and is built on the collective strengths of Integrated Micro-Electronics, Inc. (IMI), a globally leading manufacturing solutions provider, and AC Motors, one of the country's largest multi-brand vehicle distribution and dealership groups.
Despite economic uncertainties brought on by the pandemic, the Ayala Group believes that the manufacturing sector will accelerate recovery with significant investments in digitization and a pivot to changing global demands.
IMI continues to deliver emerging technologies for automotive, smart energy, and connectivity solutions in 22 plants across the globe.
During the onset of the COVID-19 pandemic, IMI shifted its focus and resources to manufacture components for essential and critical products in the fight against the virus. This pivot not only allowed IMI to resume some level of operations, but it also helps with the overall efforts to address the pandemic. Through STI Ltd, IMI was able to respond to the United Kingdom’s call to aid in the manufacturing of life-saving medical equipment through the Ventilator Challenge program, creating the UCL Ventura Flow Generator, a non-invasive ventilatory treatment for moderate to severe COVID-19 patients. It is the first breathing aid solution manufactured in the Philippines. IMI and STI Ltd are working on a low-cost ventilator system for use in the Philippines and other developing countries.
IMI’s Laguna facility produced up to 2 million disposable three-ply face masks per month. The company also created solar-powered hands-free sanitizing booths, which have been rolled out in various AC Industrials sites.
IMI’s current manufacturing value is at US$409 million. The company is investing in data engineering and expanding real-time analytics capability to provide more value to customers and reduce overall operating costs.
Merlin Solar, a member of the AC Industrials group and a solar panel manufacturer, delivered an integrated solar and remote operations monitoring solution to commercial transportation, first responder, motor coach, and transit vehicle fleets. By partnering with Optio3, Merlin Solar is helping vehicle fleets reduce fuel consumption by gallons per day per truck, reducing tons of CO2, and keeping trucks rolling at the highest levels of fleet availability. This is especially important for the pandemic, which has increased the demands on food delivery fleets, ambulance fleets, and last mile delivery vehicles for e-commerce.
AC Motors’ six vehicle brands carry more than 30 models that are not fully dependent on a combustion engine powertrain. The entry of these models into the Philippines is highly dependent on the incentivizing national framework for new energy vehicles and the consequent unlocking of market demand. Such a framework would allow AC Motors to offer these vehicles that could potentially represent up to 25 percent of total product lineup. Currently, AC Motors is utilizing virtual showrooms, online sales platforms, and mobile after sales to satisfy consumer demand.
The AC Motors - KTM joint venture factory in Laguna has manufactured over 20,000 motorcycles, mostly for export to China. Domestically, there was a 60-percent growth in Philippine KTM sales in the second half of 2020 due to the increased demand for personal transportation.
These efforts to create a globally competitive manufacturing sector can diversify and strengthen the country’s economic base and hasten economic recovery. Synergies in inclusive and sustainable industrialization can bring the country to a more productive and crisis-ready future.
Ayala will collaborate with global leaders to integrate resource efficiency in the manufacturing and transportation sector and fulfill its promise to commercialize Philippine-made low emission vehicles.
According to the International Labor Organization (ILO) the construction sector accounted for around 7.7 per cent of global employment with projections for 2020 indicating that it would contribute to 13.4 per cent of global GDP prior to the pandemic.1 The current crisis has impacted the local construction sector with the number of constructions in the fourth quarter of 2020 registering at a total of 31,026, indicating an annual decline of 20.9 percent.2 If examined by type of construction, residential buildings still accounted for 70.6 percent of the total. More needs to be done, however, to address the affordable housing needs of lower income groups in the country.
Figures from the Subdivision and Housing Developers Association (SHDA) put the current national housing backlog at 4 million, and most of the shortfall applies to affordable and socialized housing.3 Affordable housing enables lower income group populations with a greater sense of economic security and stability. Ayala has a strategic position to build inclusive, quality, and affordable communities through its property development arm, Ayala Land.
Despite the difficulties posed by pandemic, Ayala Land remains steadfast in its commitment to filling the gap for value-formoney residential units. Ayala Land retained its target of increasing sevenfold the number of launched affordable housing units in Amaia and Bellavita from 2018 levels. In 2020, the company produced 1,619 units, achieving 8 percent of the 2030 target. While fewer units were launched this year, there will be a considerable increase in launched units year on year after the pandemic. To ensure that they are on-track for their 2030 target, Ayala Land has updated its 2021 to 2025 pipeline, and estimates a 5 percent growth year on year from 2026 to 2030.
Furthermore, Ayala Land continues to support sustainable urbanization aligning its developments to meet the requirements of their four focus areas: site resilience, pedestrian and public transit connectivity, eco-efficiency, and local economic development. These focus areas are aligned with the UN Sustainable Development Goals, the six capitals of the <IR> framework, GRI and SASB standards, and TCFD recommendations. This framework also serves as a general guide to the Ayala Land’s development activities and operations, not only to mitigate sustainability risks but also to provide greater value to the business, environment, and society.
ABOVE AND BEYOND
Ayala Land also continues to contribute to other Sustainable Development Goals. In the area of biodiversity, Anvaya and El Nido recorded 66 International Union for Conservation of Nature (IUCN) Red List Species, an increase from 57 in 2019. Awareness of biodiversity value in host communities contribute to their protection and attainment of SDG 15 on Life on Land.
n the area of climate change, Ayala Land achieved 91 percent carbon neutrality for commercial properties; used renewable energy for energy needs of 63 percent of total mall and office gross leasable area (GLA); and provided 47 percent renewable energy for the energy mix for commercial properties.
Ayala Land also implements the circularity approach, where used or discarded products serve as raw materials for new products or materials. The company repurposed 28 tonnes of plastics, equivalent to 2.8 million PET bottles, in Ayala Land and Ayala Group properties, following acceptable quality standards.
Ayala Land continues to deliver on its promise to enhance inclusive and sustainable urbanization, and is on track to providing access to reasonably-priced residential units built by 2030.
Ayala Land aims to be a leader for constructing sustainable infrastructures in the Philippines, ultimately contributing to the goal of building sustainable communities and responsible urban development.
Hectares of green space recorded in urban estates
LEED-Certified Buildings in Ayala Land Commercial Portfolio
Prioritize local hiring and give opportunities for homegrown businesses
Pedestrian Mobility and Transit Connectivity
P2P bus routes near ALI malls and estates
Rationalized public utility bus routes near ALI malls and estates
Value for money residential units launched
IUCN red list species
According to the UNEP, there is currently 150 million tons of plastic in the ocean. This number is growing by an average 8 million tonnes per year, resulting in US$13 billion in damage to marine ecosystems.
Responsible consumption and resource efficiency have become increasingly important as Ayala develops ways to proactively contribute to sustainable development. We do so by taking a deeper look at how best we can make use of our natural resources in a manner that transforms choices, lifestyles, workspaces, communities, and in turn, the larger environment.
This begins from an understanding of how our business operations impact the health of the ecosystems we operate in, by measuring enterprise-wide waste through annual reporting. The long-term goal is to develop practices and processes aimed at systematically reducing solid waste generated by our businesses from reaching local landfills and the ocean.
In 2020, we looked at gaps and interventions as we prepare the waste reduction roadmap for the Ayala group. The ongoing waste management initiatives of our business units are as follows:
Metric Tonnes of repurposed plastic through Ayala Land
of paper saved by BPI and BFSB from the migration into the eSOA program
of non-hazardous waste recycled by IMI
of paper saved through the almost 49 million accounts subscribed to Globe's paperless billing
On Non-Hazardous Waste:
These and other waste reduction strategies not only prove that the organization is environmentally responsible, but also demonstrate how the group is more resource efficient by potentially turning waste into savings and viable income streams in the future. A reduction in waste through improved circularity can, in the long run, cut greenhouse gas emissions, manage risk, and reduce pollution, therefore adding more value to the organization.
By exploring the implementation of internationally recognized waste certification standards, Ayala is looking at adapting a whole-of-system approach that changes how materials are consumed by the organization, thereby reducing waste in its own operations.
To successfully implement such a program, we understand that building a waste management ecosystem that can effectively integrate and enhance emerging and current programs within the group is necessary. In 2020, Ayala started to identify partner organizations in establishing this solid waste management ecosystem. We are likewise carefully studying metrices that will enable us to achieve a significant reduction in enterprise-wide waste generation by 2030.
Responsible consumption and production means being accountable for reporting and dealing with the by-products of operations. Ayala keeps track of the waste it generates and thus controls the safe and responsible processing of waste with minimal impact on the environment and community.
The Philippines has approximately 7.2M hectares of natural forest remaining, which are home to more than 50,000 species of plants and animals, half of which cannot be found anywhere else in the world. Protecting and restoring forests can deliver up to 30% of the climate solution by 2030, and curb growing biodiversity and nature loss.1 In response, Ayala embarked on a groupwide forest and biodiversity conservation program to preserve and enhance the remaining high value forests in Oriental Mindoro through Project Kasibulan.
HARNESSING NATURE-BASED CLIMATE SOLUTIONS
Oriental Mindoro has some of the densest, and most biologically diverse ecosystems in the country. In the past decade, increasing populations and human activity have threatened the ecological balance of the island, as many communities rely heavily on the forest for their resources. The same forest is also under threat from land conversion for plantations and roads, weak monitoring strategies, and deforestation which contribute to forest loss and degradation in the island
Project Kasibulan focuses on Oriental Mindoro because of its high biodiversity concentration. It is also considered by many as one of the key “food baskets” for Luzon. Despite these opportunities, the island’s forest cover and biodiversity continues to be threatened by unsustainable human practices and the effects of climate change. It is for this reason that Project Kasibulan is working with local communities and the indigenous people of Oriental Mindoro to ensure the long-term protection and survival of the forest and the biodiversity found therein. These include the rare, threatened, or endemic flora and fauna, threatened habitats, ecosystem services, sacred and ritual sites, as well as the natural resources utilized by the local communities and the indigenous people.
With a project area estimated to cover more than 32,000 hectares, this is slated to be the first project of its scale and impact in the Philippines. Project Kasibulan aims to ensure that the remaining high value forests within the project area continue to host and secure populations of threatened species and ensure their resilience from the increasing threats posed by development and the impacts of a changing climate.
A HOTSPOT FOR BIODIVERSITY
The Technical Team was able to record a total of 437 species in the island of Mindoro during the survey period. This includes 73 birds, 18 mammals, 12 amphibians, 12 reptiles, and 322 plants. For faunal species, 11 are classified as globally and nationally threatened. For plants, 31 are classified as threatened according to the IUCN and the DENR.
STRENGTHENING COMMUNITY SUPPORT
The Project will be working with indigenous communities in Oriental Mindoro. As such, special care and attention was placed on ensuring compliance with the Indigenous Peoples’ Rights Act (IPRA) in dealing with the tribal communities. Anchored on a strong anti-discrimination assurance policy, stakeholders are invited voluntarily regardless of gender, race, religion or any other basis. Independent indigenous peoples’ rights lawyers consulted heavily with the team and accompanied them in community gatherings to ensure that the IPRA was followed, with full coordination of the national agencies and local government units tasked with communities’ care.
Whenever necessary, the project continues to conduct learning sessions with the communities to ensure that the stakeholders understand their rights and responsibilities as collaborators in the project. Great care is taken when explaining the potential costs, risks, and gains to the relevant communities and stakeholders. Regular dialogue with the project’s Social Team and indigenous peoples’ rights experts during the pandemic was critical in maintaining project momentum throughout 2020. This ensured sustained community support for the project despite the challenges posed by the rolling lockdowns in the country.
Environmental Action Lives On
As a testament to its commitment towards reforestation and environmental action, Ayala continued its efforts on Project Kasibulan despite the effects of the pandemic in 2020. The reforestation program was continued virtually, in partnership with locals in Pagudpud, Ilocos who planted on behalf of the volunteers. A total of 146 online sign-ups resulting in 85 on-the-day volunteers participated in the program. Virtual Kasibulan extended its impact by encouraging volunteers to make a small donation via GCash for the reforestation efforts of Bambuhay in the Ipo Dam Watershed in Norzagaray, Bulacan. Donations by the volunteers were matched by Ayala Corporation so that together, we can continue to protect the environment despite current circumstances.
A total of 528 assorted fruit-bearing trees were planted in Pagudpud. The volunteer and Ayala Corporation donations were able to provide an additional 822 seedlings for planting within the Ipo Dam Watershed Area.
Ayala understands the impact of climate change has on local ecosystems and the communities that rely on them. Actions need to be taken to address the effects of carbon emissions on local and global ecosystems, hence Ayala’s initiatives are design to conserve and proliferation of the country’s biological riches.
Indigenous community representatives have participated in information and education sessions for Project Kasibulan
We remain firm in our belief that sustainability is key in lifting the lives of the disadvantaged Filipinos.
We remain steadfast in our commitment to the UN Sustainable Development Goals since its launch in 2015.
We continue to be strategic and focused as a group. As we move forward with our journey with the Ayala Sustainability Blueprint, we are deliberately monitoring and evaluating our progress, making changes whenever necessary, and allocating resources more appropriately, so that our business truly create shared value.