If the current rate of global emissions is not significantly reduced, there will be exponentially increasing consequences, according to latest reports from the Intergovernmental Panel on Climate Change (IPCC).
The Philippines ranks fourth among countries most affected by climate impact in the past 20 years, based on 2018 studies referenced by the 2020 Global Climate Risk Index published by Germanwatch.
As a business leader that invariably supports national efforts in climate action, Ayala considers climate change as one of its priority sustainability issues. Closely monitoring its carbon footprint, the holdings company actively responds to this issue by mobilizing its business units across three strategies:
Scope 1 Emissions1M tonnes CO2e
Decrease from 2018
because of AC Energy’s divestment of its thermal assets and interruptions on SLTEC’s operations
Scope 2 Emissions
Electricity Consumption0.44M tonnes CO2e
Increase from 2018
due to the expansion in several of Ayala’s business units
Project Kasibulan embodies Ayala’s commitment to building and managing sustainable ecosystems and communities.
As Project Kasibulan contributed to reforestation efforts and promoted volunteerism among employees across the group, its focus also widened to include the economic welfare of communities as a critical aspect of biodiversity protection.
As it grows and develops into a Reducing Emissions from Deforestation and Forest Degradation (REDD+) initiative, Project Kasibulan adopts the Payments for Ecosystem Services (PES) scheme as a means to incentivize communities for the protection and enhancement of the environment. This allows for a long-term sustainable program that integrates biodiversity protection with economic growth in building the adaptive capacity of both local communities and ecosystems in response to climate change.
Some of Ayala’s business units operate in areas with rich biodiversity. A United Nations Environment Programme (UNEP) report identifies land use change and climate change as critical pressures on biodiversity. Biodiversity loss can lead to the collapse of ecosystem services, which threatens agricultural productivity, livelihoods, and local flora and fauna species. Thus, integral to the group’s commitment to sustainability is responsible operations and environmental management in these locations.
Southeast Asia is one of the most dynamic regions in the world where energy demand is projected to grow by 60 percent in the next two decades. Furthermore, rapid urbanization and development coupled with shifts in climate patterns will increasingly threaten the region’s water security. Being a key player, Ayala’s commitment to resource efficiency is vital.
Ayala constantly monitors its energy and water consumption as key inputs to its operations. In 2019, group-wide consumption of electricity increased while its water consumption decreased. The conglomerate continues to implement energy and water efficiency programs across the group to promote responsible resource consumption.
East Asia and the Pacific regions are responsible for 23 percent of total waste generated worldwide . Ayala, whose businesses operate in these regions, is in a unique position to contribute to national efforts in waste management. The Ayala Sustainability Council, a platform for sharing best practices, helps cascade programs on waste management and resource efficiency across the group. One of these is Ayala’s reduce, recycle, and recover program.
Embedded within Ayala’s environmental policies is its mandate to promote waste management efforts among its people and to seek effective ways to manage waste. Subsidiaries incorporate waste management into their due diligence process and environmental initiatives. The group also observes proper protocol for the transport, treatment, storage, and disposal of hazardous waste. In 2019, the group generated 48,632 tonnes of non-hazardous waste. Ayala commits to improve its performance in managing its material footprint. See our progress here