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Climate Change and Biodiversity

Ayala is cognizant of our impact on the climate and its effects on both the local and global biomes. We espouse principles that value the environment as we recognize its important role in our sustained growth as an organization and in building a better future for the society. In line with our values, we ensure to keenly monitor our environmental impact through our GHG emissions while proactively protecting biodiversity in the Philippines through our comprehensive initiatives.

Climate Change

TCFD Strategy and Metrics and Target Pillars

Despite the decline in overall human activity due to the rolling lockdowns and quarantines around the world, GHG emissions only experienced a brief drop before rising rapidly back into pre- COVID levels. Our own emission levels have also been reduced because of local quarantining protocols, which gave us insight into strategies we could adopt to help reduce our overall emissions in the future. We are proactive in mobilizing our business units to address our climate impact by espousing three key strategies:

1

Mitigation

Ayala’s first strategy is centered on our capabilities to reduce carbon emissions with the goal of mitigating our overall environmental impact.
2

Adaptation

We promote climate adaptation by strengthening the resilience of our assets and their adjacent ecosystems and communities
3

Innovation

We harness the collective innovative strengths of our businesses to develop and implement effective climate initiatives.
  • VISION
  • AYALA LAND
  • GLOBE

Highlighted company practices

Conduct Scope 3 screening in preparation for setting science-based targets

Engage and guide the Sustainability Council in the development and implementation of SMART ESG Targets with relevant metrics

Globe secured carbon offsets from renewable energy sources and was able to achieve carbon neutrality for its headquarters and two other offices in Quezon City and Cebu. This earned them the Gold Standard Verified Emission Reduction (VER), assuring the company's declaration of 100% carbon offsetting of CO2 emissions from electricity consumption.

In line with Globe's Environmental Sustainability Policy, they deployed almost 7,000 Green Network Solutions such as fuel cells systems, direct current hybrid generators, free cooling system and lithium-ion batteries.

Globe also set an emission reduction target - committing to reduce its carbon footprint by 30 percent based on their 2017 levels - by 2030. This will be in line with their intention to be carbon neutral by 2050.

Ayala Land continues its initiatives to reach its commitment to net-zero carbon emissions in its malls, offices, and hotel properties by 2022.

63 percent of total mall and office gross leasable area shifted to renewable energy, as a result, net emissions decreased by more than 154,000 tonnes CO2e. The share of renewable energy in the commercial properties' total energy mix is now at 47 percent.

Ayala Land also set an internal price on carbon for every kilowatt-hour that was not sourced from clean energy. This is to provide incentives for investing in low-carbon alternatives and generate funds and other resources for use in enhancing their carbon forests.

Energy Resource Planning and Physical Impacts of Climate Change

Recognizing the need to transition to a low carbon economy, AC Energy is taking a phased divestment strategy for its thermal assets. This supports their Long-Term Portfolio Mix Roadmap published in its Environmental and Social Policy Statement. Moreover, the demand for renewable energy resources is increasing and AC Energy aspires to be a regional leader in this space. Within the group, select business units like Globe, BPI, Manila Water, and Ayala Land have begun purchasing renewable energy directly from AC Energy through its retail electricity supply arm. As part of its resource planning, AC Energy is committed to increase it renewable energy portfolio to 5GW capacity by 2025.

Ultimately, Ayala recognizes that climate change has severe physical impacts like flooding, rising sea levels, drought, rising temperature, and extreme weather events. These can have high economic damage and we continue to take this as an opportunity to further make our businesses resilient. To know more of our commitment to the TCFD Framework, please see our TCFD Roadmap here.

Biodiversity

According to the World Wildlife Organization (WWF), the Philippines is a biodiversity hotspot, meaning it is one of the richest places in the world wherein there is a large amount of diversity among the inhabiting species. As a peninsula, we harbor a plethora of unique endemic species in our islands, and being part of the Coral Triangle, we have some of the widest assortment of marine life on Earth. Ayala leads in the proactive preservation of our country’s biological riches, which gave birth to our flagship conservation program Project Kasibulan.

With the diversity of our businesses and broad geographic reach of our operations, Ayala recognizes that we must always be aware of how we affect the environment. We commit to giving positive impact to biodiversity in our operations, projects, activities or facilities. We shall continue to monitor our outputs and report them in a fair and transparent manner. We endeavor to create and implement projects that will manage our greenhouse gas emissions as we strongly support the government's national re-greening efforts.

  • AYALA CORPORATION
  • AC ENERGY
  • AYALA LAND

Highlighted company practices

The Mindoro Forest and Biodiversity Conservation Program: According to WBCSD, natural climate solutions help nature do what it has been doing for millions of years – sequester and store carbon. This means producing food more sustainably, improving land use, and protecting and restoring forests. The Mindoro Forest and Biodiversity Conservation Programme aims to harness nature-based solutions to address climate change and mitigate against its impacts. The project aims to avoid deforestation and sequester carbon by conserving and protecting the remaining high value forests in Oriental Mindoro as it enhances livelihood opportunities for its stakeholder communities under the United Nations scheme of Reducing Emissions from Deforestation and Forest Degradation (REDD+). By doing so, the project simultaneously fosters climate adaptation and mitigation, biodiversity conservation, and sustainable development.

By protecting the forests of Mindoro, we are also protecting a vital global biodiversity hotspot, which is home to many endemic species that do not exist elsewhere in the planet.

We recorded endemic species to the Philippines during the sampling period, as follows:
■ 41 birds, six of which are found only in the Mindoro Endemic Bird Area
■ 9 mammals
■ 10 trees that are classified as critically endangered by the IUCN

Turtle Conservation Program: In 2020, we assisted in the rescue, release & tagging of 13 turtles (10 in Pagudpud, 3 in Bangui). We also managed 240 turtle eggs with a 74% hatching rate. Currently, we are monitoring 398 eggs (all from Pagudpud).

Social Forestry: By implementing Analog Forestry and Agroforestry Programs, human dependency on traditional forest areas is lessened, improving natural forest conditions and increasing their biodiversity value. Through the Analog Forestry Program, we produced more than 67,000 assorted seedlings with our community partners. The Agroforestry Program on the other hand completed the 4.5 hectares Model Farm while successfully integrating goat and mushroom production to the model. The program was also able to assist about 100 farmers through the provision of more than 11,500 fruit-bearing tree seedlings.

A Legacy of Conservation: With approximately 4,900 hectares of land with high biodiversity value, the conservation and protection of indigenous flora and fauna is of paramount importance to Ayala Land. This 2020, a total of 66 IUCN Red-List Species, the gold standard for the inventory of the global conservation status of plant and animal species, were recorded from the Anvaya and El Nido estates. Only 57 were recorded in 2019. Furthermore, a total of about 104,000 hectares of native trees were recorded across all Ayala Land developments, an increase of 20 percent from previous year.

The creation of appropriate development plans and programs to conserve and protect indigenous biodiversity and the use of native trees in our developments are critical to our Site Resilience Strategy. For this reason, assessments and monitoring of native flora and fauna are regularly undertaken in estates with high conservation values. Likewise, the use of native trees not only protects local biodiversity, but also allows for quicker recovery from environmental disturbances

Ayala Land maintains the eco sanctuaries in its properties in El Nido, Palawan.

Climate change has far-reaching implications beyond its influence on global weather patterns as it has profound and permanent effects on life in the biosphere. For Ayala, it is not enough to address the climate crisis as merely a target to reduce emissions within a few years, rather, we believe in a holistic approach which includes preserving and protecting biodiversity. In doing so, we hope to create sustainable systems to mitigate Climate Change and its threat to Biodiversity that withstand the test of time.

Climate change has far-reaching implications beyond its influence on global weather patterns as it has profound and permanent effects on life in the biosphere. For Ayala, it is not enough to address the climate crisis as merely a target to reduce emissions within a few years, rather, we believe in a holistic approach which includes preserving and protecting biodiversity. In doing so, we hope to create sustainable systems to mitigate Climate Change and its threat to Biodiversity that withstand the test of time.

Resource Efficiency and Waste Management

Resource Efficiency

Lockdowns and extended quarantines in 2020 gave opportunities to reduce our overall usage of our utilities and ultimately lower our total consumption of electricity and water. For 2020, our total electricity consumption decreased by nine percent while our water consumption decreased by three percent. However, some of this reduction can also be attributed to the resource-saving initiatives by some of our business units. For example, 78 percent of BPI branches have installed LED lights as of 2020 and 49 percent of their total branch count have installed inverter-type of air conditioning units.

Looking specifically at Manila Water, they implemented measures to be further efficient in managing water and its distribution. In 2020, they were able to distribute close to 1,300 mcm of potable water in the East Zone Concession through their 1.2 million water service connections, effectively serving more than 8.5 million people across the areas they operate in. For more information, please refer to our report, pages 131 to 132 and pages 179 to 184. As a group, we are constantly ideating innovative and scalable solutions in increasing our resource efficiency in the coming years.

We further look at Ayala Land’s material consumption and ensure they are managed efficiently. As the business unit with the significant material consumption in its operations because of cement and rebars/steel they use in their developments, they uphold policies and practices that ensure the most efficient use of the abovementioned resources. Ayala Land keeps eco-efficiency in mind and judiciously uses energy and water by implementing efficient operational improvements

Electricity Consumption
Electricity Consumption

Waste Management

Embedded within Ayala’s environmental policies is our mandate to promote effective waste management in all our business units, incorporating it into its our diligence processes and environmental initiatives. We also observe proper protocol for the transport, treatment, storage, and disposal of hazardous waste. In our vision of creating a sustainable future, we continuously adopt best practices in handling our materials and waste products, exercising waste recycling and upcycling whenever applicable. A notable example of waste management effort in the group is IMI Philippines, who achieved a 98.2 percent waste recovery of their almost 500,000 kg of non-hazardous waste through their reduce, re-use, and recycle programs. IMI's waste recovery program involves working with their value chain for a "return-to-vendor" packaging reuse initiative. Materials such as drums and containers are repurposed on site. This extends their product life cycle and effectively prevents more waste from the municipal landfill.

Looking at the overall non-hazardous waste generated by the group, we had a reduction of 37 percent due to the impacts of the community quarantine and remote work arrangements. Meanwhile, the total hazardous waste generated increased by 13 percent, and this was driven by the contaminated waste of AC Energy. Particularly related to the pandemic, our business unit AC Health had an increase of 360 percent in their hazardous waste due to the amount of medical materials used in line with their ramped-up efforts for COVID-19. They ensured that these were handled and disposed of properly, according to standards set by DENR.

On water, Manila Water was able to treat 74.1 mcm of wastewater and through their wastewater treatment and biochemical oxygen demand (BOD) removal processes, there were able to reduce their carbon emission by approximately 74,000 tonnes carbon dioxide. Moreover, they continued desludging efforts and reached more than 84,500 septic tanks despite the logistical challenges of the lockdowns.

In July 2020, AC Energy's Power Barge 102 in Iloilo had an unfortunate accident which led to an oil spill of about 268,000 liters of bunker fuel off the Iloilo strait, contributing to Ayala's total hazardous waste for the year by 36 percent. Staying true to our commitment of ensuring that we take responsibility for our waste generated, AC Energy took measures to address the incident. The oil spill has been subsequently contained using the Shoreline Cleanup Assessment Technique conducted by a third-party service provider. AC Energy, together with the Department of Environment and Natural Resources – Environment Management Bureau Region 6, and the International Tanker Owners Pollution Federation & Brand Marine Consultants collaborated to conduct continuous monitoring of the environment through the University of the Philippines Visayas.

Non Hazardous Chart
Hazardous Chart
Composition of Non-Hazardous Chart

Beyond our own materials consumption and waste management programs within the group, Ayala is reaching out to communities through projects that encourage household-level waste recovery and recycling.

  • Ayala Land
  • Globe
  • AC Infra

Highlighted company practices

Arca South and Lio Ecohubs
Building on the successful launch of the Arca South and Lio Ecohubs in 2019, Ayala Land was keen on further demonstrating a circular economy model by processing clean and dry plastic discards. With the objective of treating waste, particularly plastics, as a resource and keeping them away from landfills and oceans, clean and dry plastic wastes were converted into ecobricks, ecocasts, ecopavers that are used in construction. Out of the 29 tonnes of plastic processed in 2020, 28 tonnes were used by Ayala Land and Ayala Group developments, following acceptable quality standards. This is the equivalent of 2.8 million PET bottles diverted from the landfills and from further polluting our oceans.

E-Waste Zero
Globe’s E-waste Zero is a recovery and recycling program that ensures electronic devices such as old mobile phones, broken chargers, and other non-working gadgets are disposed of responsibly so these will not end up in landfills. Since 2014, over 50 companies and organizations have joined the program, resulting in more than 1.2 million kg of e-waste recycled.

The company’s thermal plants recycle its coal ash through partnerships with cement manufacturing companies. In 2019 recycling rate was at 92.35 percent.

The reduce-reuse-recycle program for the management of non-hazardous waste is followed across IMI sites. Globally, it has recycled 2.5 million kg of its non-hazardous waste.

Treated wastewater is reused in its facilities with sewage treatment facilities.

#WalangPlastikanMovement
The program was conceptualized with the goal of diverting plastic items from the landfills to our upcycling partners, allowing us to obtain functional items such as plastic chairs, tables, etc. Ayala employees were trained to classify their clean and dry plastic items at our colorcoded bins representing the different types of plastics: PET, HDPE, LDPE, and Others. Despite having to halt the project after 3 months, we were able to collect a total of 82kg of clean and dry plastics which are turned over to our partner upcyclers: Clean Our Oceans Project and Sentinel.

Mapua has shifted to paperless transactions, and renovated its storage facilities to house waste and hazardous materials.

Recognizing the different materials we use and the waste we generate, we remain cognizant of our responsibility in ensuring proper waste management across the group. We continue to monitor our consumption and waste productions while implementing strategies in different levels of our business operations to minimize our negative impacts to the environment. Moreover, we extend our reach by engaging our consumers and workforce to take part in waste management initiatives of select business units.