Ayala Corporation, one of the largest conglomerates in the country, is committing to achieve net zero greenhouse gas emissions by 2050.
This was announced by Ayala President & CEO Fernando Zobel de Ayala during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit.
“As Ayala’s concrete contribution to the well-being of future generations of Filipinos, we are announcing our commitment to achieve net zero greenhouse gas emissions by 2050,” he said.
Zobel added that, “We are aligning ourselves with the global movement for climate action as our way to help secure our country’s future from the threats brought by climate change. We believe that we have the capabilities and collective will to make this happen.”
Ayala aligns its business strategy with the Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels.
As such, Ayala commits to set targets aligned with science that cover the following: Scope 1 (direct emissions from owned or controlled sources), Scope 2 (indirect emissions from generation of purchased electricity), and all relevant Scope 3 (all other indirect emissions that occur in value chain).
Scope 3 emissions are expected to make up the majority of Ayala’s footprint and can be complex to address, but Ayala is committed to net zero best practices and driving meaningful change in its business ecosystem.
Prior to Ayala’s net zero by 2050 announcement, its core business units have already initiated their own climate-action interventions.
Ayala Land is aiming to offset its Scope 1 and 2 emissions by 2022 for its commercial operations while Bank of the Phillippine Islands (BPI) will not finance new greenfield coal power generation projects. BPI will reduce its coal power generation exposure to half of 2020 by 2026 and to zero by end of 2032.
Globe Telecom has shifted to buying energy directly from renewable energy producers for its headquarters in Taguig and six offices and facilities since 2019 while AC Energy is on its way to installing 5GW of renewable energy by 2025.
Ayala Corporation’s Project Kasibulan, a reforestation, forest protection, and biodiversity conservation program for carbon sequestration is to be piloted in the island of Mindoro.
To develop a net zero roadmap, Ayala partners with South Pole, a leading project developer and global climate solutions provider that works with private organizations and governments worldwide.
This partnership enables the group to have an accurate view of emissions across its core business units and a tangible roadmap for reducing them in line with its net zero by 2050 ambition.
Ayala believes that accelerating climate action is part of its recovery roadmap. Despite the challenges of COVID-19, global companies have moved towards net zero.
Capital has been flowing to sustainable investments as a growing number of investors and lenders walk away from carbon-intensive sectors.
And, while a net zero ambition entails risks and costs, Zobel sees it as a long-term investment for the future generations, aptly defining Ayala as a catalyst and partner for net zero transition in the Philippines.