Ayala Land intensifies initiatives for a greener future
Property developer Ayala Land, Inc. (ALI) advances its sustainability roadmap with their 2022 scores from global ESG (Environment, Social, Governance) rating firms.
ALI’s latest achievement is a B rating for Water Management, as noted by the CDP (formerly known as the Carbon Disclosure Project), the highest rating for the Philippines, tied with Manila Water. As the only Philippine member with leadership rating since 2020, ALI also maintained its A- rating on the CDP Score Report on Climate Change, which is higher than Asia’s regional average of C. This puts the company at par with other Asian entities such as Singapore’s City Developments Limited and Japan’s Hulic Co Ltd., and Mitsubishi Estate Company Ltd.
The CDP is a global non-profit that runs the world’s environmental disclosure system for investors, companies, cities and governments to assess and manage their environmental impact and is considered the gold standard in corporate environment reporting.
Meanwhile, Ayala Land is the only Philippine member in Environmental, Social, and Governance (ESG) rating provider Sustainability Yearbook of S&P Global since 2017. This year, S&P Global ranked ALI within the 96th percentile, which is an improved score from 2021. This puts ALI’s sustainability performance at the top 4 percent within the real estate industry, simultaneously making them the highest ranked company in the country.
ALI also retains its Dow Jones Sustainability Indices (DJSI) membership for the 9th year, while still being the only Philippine member. The DJSI tracks the world’s largest companies’ sustainability initiatives by analyzing corporate economic, environmental, and social performances.
On the other hand, the ALI’s Sustainalytics standing remains Low Risk, with their score of 16.9 – an improvement from last year’s 17.3. Similarly, ALI retained its MSCI rating of BB.
With today’s focus on sustainability, circular economy, and going green, industries usually put emphasis on looking forward and creating a better world than we found it. The scores that ALI received were not achieved overnight. Forwarding sustainable development not only within the organization but in the country is an ambitious goal, and reaching its 2022 achievement of exceeding controllable carbon targets was 5 years in the making.
In 2017, ALI embarked on a bold pledge to neutralize scopes 1 and 2 carbon emissions in its malls, offices, hotels, and resorts within 5 years.
Alaminos Solar and Carbon Forest
Taking their commitment by a notch, ALI was the first real estate company to complete inventory on scopes 1, 2, and 3 as they mobilized their Net Zero task force composed of finance, HR and sustainability leads of their business units. They have also closely worked with expert firms to assess, track, and disclose data with integrity. ALI has had its sustainability data externally assured for 10 years, paving the way for the next stage in the company’s journey to Net Zero.
“I am confident that we will reach our goals given the progress we’ve made to offset our carbon footprint for our Scopes 1 and 2 emissions in all our commercial properties,” ALI President and CEO Bobby Dy said.
“We will be clearly defining our year-on-year targets so that we can measure and reach our 2030 carbon reduction and 2050 Net Zero goals. To achieve this, we will be working in partnership with our suppliers and customers to ensure that our initiatives are in line with our business goals,” Dy added.
Ayala Land made bolder commitments of reducing and removing 100% of controllable emissions within the ALI Group by 2030, and reaching net zero by 2050. With annual ESG reviews, ALI will be able to keep up with the latest requirements and adjust their targets accordingly, in line with these set goals.
Ayala Triangle Gardens
What does Net Zero mean? How does it relate to Scopes 1, 2, and 3?
You may have heard it many times already, but what does it cover?
Net zero refers to getting greenhouse gas (GHG) emissions to zero as much as possible. These emissions are Scope 1 and Scope 2 emissions, which, for ALI, are associated with a company’s controllable emissions from fuel, refrigerant and electricity use, and Scope 3 emissions that cover all other emissions from its value chain, including those of its suppliers, tenants, and customers, are reduced and removed.
To get to Net Zero, emission reduction and removal processes must be observed. Emission reduction entails identifying emission sources and implementing strategies such as using renewable energy, undertaking efficiency initiatives and switching to low-carbon alternatives to reduce emissions produced. On the other hand, removal methods require strategies such as tree restoration, reforestation and restocking degraded forests, and direct air capture according to the World Resources Institute (Carbon Removal, n.d.) In 2021, the Philippines announced that it will raise its carbon emission reduction target to 75% by 2030, in line with its commitment to the Paris Agreement on Climate Change.