The Philippine government is firm in its goal to reduce the number of Filipinos who cannot afford basic necessities to 11 percent by 2022, using as a point of reference the 16.6 percent poverty incidence in 2018.
Recognizing the influence of businesses to the country’s economic performance, Ayala aims to contribute to SDG 1 (No poverty) and SDG 8 (Decent work and economic growth) by creating economic values that improve lives, especially for the underserved and unserved. Moreover, Ayala observes fair and ethical practices in its business activities.
Ayala’s strength is anchored on many years of dedication to solid business values and principles, the foremost of which is integrity. It observes the highest standards of corporate governance and maintains a leadership culture of doing the right thing in every decision. A Code of Conduct and Ethics guides the company in all transactions and dealings with customers, suppliers, business partners, and the government. Zero-tolerance is adopted toward fraud, corruption, bribery, and all forms of unethical practices.
As part of the UN Global Compact Network Philippines, Ayala adheres to its anti-corruption principle. It remains committed in complying with all relevant laws and regulations.
Ayala thrives on enabling shared value and prosperity for its stakeholders and partners. At the core of business is its commitment to national development, which drives the motivation to create long-lasting value.
Despite the pandemic casting a dark cloud on the business landscape, the Ayala Group generated ₱463.51 million in economic value as it sought to fill the gaps in various aspects of society, such as in healthcare, education, and infrastructure. Out of this amount, ₱161.97 million or 34.9% went to operating costs, while ₱139.81 million (30.2%) is retained by the company.
Ayala companies procure heavily from Philippine-based suppliers and service providers to support local economic growth. Each business unit has supply chain policies and code of conduct that requires suppliers to go through an accreditation process to ensure their legitimacy, technical competence, financial capability, and service quality.
Ayala addresses the group’s Scope 3 GHG emissions, also referred to as value chain emissions. Suppliers will be subjected to higher levels of environmental and social standards. Scope 3 emissions are the result of activities that an organization indirectly impacts in its value chain and often represent the majority of the organization’s total GHG emissions. Although quantifying Scope 3 emissions is not required by regulations, this would provide a complete picture of the full GHG impact of Ayala’s operations. It also presents opportunities for emissions reduction. Specifically, Ayala will be able to influence its suppliers to embrace sustainability, or award contracts only to vendors that adhere to sustainable practices.
Some of Ayala’s business units such as Ayala Land, Manila Water, and IMI have included sustainability performance in their criteria for supplier accreditation.
IMI, for instance, ensures that suppliers adhere to global sustainability standards such as the Responsible Business Alliance (RBA) code of conduct (formerly the Electronic Industry Citizenship Coalition). Part of its supplier assessment includes determining the levels of hazardous substances in their contents. The RBA code of conduct covers labor, ethics, environmental, health and safety, and overall management system. In connection to material consumption, IMI ensures responsible sourcing of minerals and metals from those not supporting rebel groups of the Democratic Republic of Congo and related countries. Moreover, suppliers are expected and required to practice sustainability measures across their own operations.
Moreover, in line with our commitment to support local economic growth, some of our business units are deliberate in spending locally. Most of our business units ensure local spending of beyond 50 percent, and notably, three of which spend from 95 to 100 percent - AC Infra, AC Energy, and Manila Water, at 95, 99, and 100 percent, respectively.
Ayala Land practices procurement standards with preference for suppliers that practice environmental responsibility.
Their sustainability campaign began in 2018 to influence their vendors to adopt sustainable practices or create their own initiatives. ALI also requires its suppliers to acknowledge the company’s Vendor Code of Ethics as one of the accreditation requirements. Their Internal Audit Division conducts vendor audits in accordance with the provisions of this code.
Ayala’s business units have strong community engagement arms that reflect the Group’s cognizance of the various development needs in the communities. Consistent with Ayala’s promise of transforming communities, these initiatives capture the spirit of volunteerism among the Group’s workforce, as well as partnerships with relevant sectors on the ground. It is not just a means of “giving back” to the communities, but more importantly, sends a message that Ayala’s business objectives are in alignment with solutions to address the gaps in society.
The Ayala Group of Companies launched the 2020 Brigada ng Ayala in October with the turnover of a 10-faucet handwashing facility and 200 Ayala EduCare packs at the Ramon Magsaysay High School.
The Ayala Group foundations—BPI Foundation, Manila Water Foundation, and Ayala Foundation—presented the handwashing facilities which are essential in preventing the spread of coronavirus. The hygiene facility was designed by Manila Water Foundation to match the current needs in the new normal. The “contactless” design of the facility helps users to turn on the faucet via a foot pedal, while the one-meter distance between faucets allows proper physical distancing. Appropriate signages were also mounted on the facility to ensure that the steps to proper handwashing are followed. The facility is also connected to clean water supply and a drainage system to ensure reliability and safety.
Meanwhile, the Ayala EduCare packs are hygiene kits that contain school supplies, posters that teach about COVID-19 measures and proper hygiene, face masks, a face shield, alcohol, bar soaps, and the Manila Water Foundation’s children’s storybook May Tubig na sina Tinay that teaches about water access, sanitation, and hygiene (WASH) practices.
These and other efforts comprise a comprehensive COVID-19 response across the Ayala Group that exemplifies the community spirit of our leaders and employees, and a commitment to work towards sustainable recovery beyond the pandemic.
The Ayala Group subscribes to the highest standards of conduct and we expect nothing less from our employees and partners. This is the spirit that motivates us to share prosperity, create meaningful engagements with our target communities, protect the environment, and work towards a more sustainable future.