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Climate Change and Biodiversity

Climate Change

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:

1

Mitigation

We continue to refine our existing business strategies and to identify new opportunities by leveraging our financial, intellectual, human, and social and relationship capital.
2

Adaptation

We utilized quantitative and qualitative criteria and a multi-step management approach to fund new or existing businesses.
3

Innovation

We continue to balance our holdings to crystalize value.

  • Ayala Land
  • BPI
  • Globe
  • IMI
  • AC Energy
  • Manila Water
  • AC Motors
  • LRMC
  • iPeople

Highlighted company practices

  • Implemented passive cooling and sustainable architecture design at the planning and construction level to minimize carbon emissions, crucial to the company’s carbon neutrality target
  • Stored up to 80,345 tonnes of CO2e by protecting 586 hectares of carbon sinks across the country through its carbon forest initiative
  • Avoided about 121,951 tonnes of CO2e by shifting to renewable energy use
  • Promotes environment and sustainable development (ESD) as part of its curriculum in Mapua, and includes courses on environmental protection and conservation
  • Established the Sustainable Development Research Office (SDRO) in 2011, which was renamed the Resiliency and Sustainable Development Center (RSDC) in 2019 – a platform to develop research projects to solve environmental and societal problems
  • Offers fuel and eco-efficient automotive models
  • Encourages customers to avail of regular maintenance for their vehicles to ensure optimal engine performance and reduce environmental footprint
  • Established Green Finance Framework, which sets guidelines for the issuance of green bonds and loans to fund projects with positive environmental impacts
  • Issued two landmark green bonds, allocated to eligible green projects (CHF 100 Million green bond - issued in August 2019; and US$300 million green bond - issued in September 2019)
  • Disbursed ₱10.14 billion for energy efficiency, renewable energy, and climate resilience projects under its Sustainable Energy Financing (SEF) program; and ₱2.17 billion for large renewable energy projects under its Structured Finance Division (SFD)
  • Achieved carbon neutrality for select corporate offices through its partnership with AC Energy
  • Encourages its employees to limit the use of motorized vehicles for business commute through web-based mobile applications and digital worktools
  • Has programs that encourage customers to join reforestation efforts: Globe Rewards, which raised ₱2 million for the Hineleban Foundation; and GCash Forest, which engaged 1.7 million customers in cashless transactions for tree planting
  • Generated 10.8 MW of renewable energy, equivalent to around 10 tonnes of CO2e reduction through its Solar Pilot Project Initiative using Merlin® Solar’s patented technology in its Laguna site
  • Added 153 MW of renewable energy to its portfolio in 2019, bringing its total attributable RE capacity to 656 MW
  • Generated 1,758 GWh from renewable assets in 2019, bringing its RE output to 50 percent of its total energy output
  • Conducted resiliency assessment and business impact studies of its Manila and Laguna facilities
  • Retrofitted its facilities to increase disaster resiliency
  • Built new assets in strategic locations that are not exposed to flood hazards
  • Deployed bike racks and bike lanes across designated LRT stations and roads through its Bikeways Project

Climate Strategy

  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation
  • Mitigation
  • Adaptation
  • Innovation

Scope 1 Emissions

1M tonnes CO2e
38%

Decrease from 2018

because of AC Energy’s divestment of its thermal assets and interruptions on SLTEC’s operations

Scope 2 Emissions

Electricity Consumption

0.44M tonnes CO2e
2%

Increase from 2018

due to the expansion in several of Ayala’s business units

as of 14 August 2020

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.

Biodiversity

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.

  • Ayala Land
  • BPI
  • AC Energy
  • Manila Water

Highlighted company practices

Through regular biodiversity studies in select sites that integrate findings in its development plans, a total of 57 IUCN Red List species were identified, monitored, and protected.

The company spearheaded a program on marine biodiversity conservation empowering micro, small, and medium enterprises to protect marine life by adapting sustainable approaches to business operations.

The energy platform’s Environmental and Social Management System promotes sustainable business operations by conducting biodiversity studies and assessments to ensure environmental responsibility in its projects. These are agro-forestry programs in Pagudpud and marine and sea turtle sanctuaries in Bangui.

The company maintains its watershed management projects such as the reforestation of Umiray, Ipo, La Mesa, Upper Marikina, Nabaoy, and Luyang watersheds along with Adopt-a-Watershed programs for Ipo watershed and Clark Water.

Resource Efficiency and Waste Management

Resource Efficiency

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.

  • Ayala Land
  • BPI
  • Globe
  • Manila Water
  • IMI
  • LRMC
  • iPeople

Highlighted company practices

As one of ALI’s four focus areas, eco-efficiency addresses the continuing scarcity of natural resources. It uses resources judiciously through energy and water conservation programs such as investments in efficient equipment and various operational improvements

The bank continues to improve its energy efficiency by installing LED lighting and inverter-type airconditioners across its branches.

2019 saw the full implementation of the BPI Credit Cards electronic statement of accounts (eSOA) project. Through this, the bank saved 12.09 million pages of paper or approximately 1,452 trees.

The company’s cell sites’ energy efficiency increased by deploying 6,948 Green Network Solutions.

Its paperless billing operations have led to savings of 655 tons of paper or about 15,717 trees.

Among its resource efficiency initiatives are: installing energy management systems in 10 facilities, shifting to LED lights and inverter air-conditioning units, and optimization of water supply and wastewater operations.

MWC also reduced its enterprise-wide NRW to 9 percent, which aligns with the SDG 6 target of increasing water-use efficiency.

Energy programs such as installation of LED lighting, optimization of operating hours of selected equipment, and upgrading of air conditioning help the company efficiently manage resources.

It also has water recycling initiatives in select sites to recover and treat excess water used in its operations.

Using regenerative energy (turning deceleration of trains to stored energy) has led to a reduction of 36,000 kWh in energy consumption in train operations.

APEC, UNC, and Mapua installed LED lighting. Mapua retrofitted pipelines and set up rainwater catchment systems.

Each school has an energy conservation policy where lights and appliances are turned off when there are no classes or activities.

Waste Management

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

  • Ayala Land
  • Globe
  • AC Energy
  • IMI
  • AC Motors
  • AC Infra
  • iPeople

Highlighted company practices

Waste management programs are implemented in select commercial properties and estates. As a result, Ayala Land diverted around eight million kilograms of total waste from landfills including 32,000 kilograms of plastic.

There are also clean and dry plastic drop-off booths that serve as educational venues for proper waste management among visitors to its estates.

MDC, Ayala Land’s construction arm, maintains its waste management initiatives by recycling 893 tonnes of construction waste.

In collaboration with Green Antz Builders, Ayala Land launched a pilot Eco Hub at the 74-hectare Arca South Estate in Taguig. The facility collects discarded plastic materials and recycles them into eco bricks, eco pavers and eco cast.

Through a mobile recycling program called Project 1 Phone, Globe has recovered and diverted 355,000 kilograms of electronic waste from landfills. Moreover, proceeds of this program will be used to help build classrooms in the Philippines.

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.

Monthly waste generation is tracked as LRMC actively promotes waste reduction, composting of biodegradables, PET bottle recycling, and eliminating single-use plastics. These efforts resulted in 85 tonnes of waste diverted from landfills.

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