Ayala Land Inc. (ALI) and the International Finance Corporation (IFC) have signed a Memorandum of Understanding (MOU) for a partnership that would help accelerate the transition of the Philippine property sector toward net zero.
Under this historic agreement, ALI and its real estate investment trust AREIT Inc. aim to achieve by 2025 EDGE Zero Carbon certification across its portfolio of 1.5 million square meters (sqm), with advisory support from IFC.
This ambitious undertaking will establish the Philippines’ largest EDGE Zero Carbon portfolio, comprising 900,000 sqm to be certified by 2024, and an additional 600,000 sqm by 2025.
“For Ayala Land and AREIT, this highest level of EDGE is what we are aiming to secure in line with our goal to become the largest EDGE Champion in the Philippines,” AREIT President and CEO, and Head of Ayala Land Offices Carol T. Mills said.
She added that, “we believe achieving zero carbon in our buildings will yield not only for ourselves but also for our valued office locators the most substantial, relevant and much needed contribution towards long-term sustainability and environmental responsibility.”
The certification of these properties within the leasing portfolio signifies a profound commitment to optimizing energy and water utilization while significantly reducing embodied carbon within construction materials.
Notably, 1.3 million sqm of ALI and AREIT’s portfolio already operate on 100 percent renewable energy sources, a commitment that will endure for all forthcoming developments.
“The Ayala Group is a longtime partner on sustainability initiatives, and I look forward to welcoming Ayala Land and AREIT as EDGE Champions,” said IFC Country Manager for the Philippines Jean-Marc Arbogast.
He noted that, “in many ways, it’s much harder to green existing infrastructure. Ayala Land’s pledge to certify its portfolio as zero carbon underscores their deep commitment to net zero and whole-portfolio decarbonization.”
IFC, a member of the World Bank, is the largest global development institution focused on the private sector in emerging markets.
An innovation of IFC, EDGE is a green building certification that has gained traction among property owners and developers seeking to reduce the operational costs and greenhouse gas emissions of their building portfolios without incurring significant additional costs.
EDGE is complemented by a free software that encourages green building measures that can be applied during the design, construction, or retrofitting of a building, to reduce the use of energy, water, and materials by at least 20 percent compared to base case, which is the EDGE standard.
EDGE provides a pathway to net zero through EDGE Zero Carbon, the highest level. To reach EDGE Zero Carbon, a building must demonstrate a 40 percent improvement in energy efficiency compared to the base case and it must incorporate renewable energy sources, carbon offsets, or a combination of both, for its total energy demand.
Since its inception in 1988, Ayala Land has been at the forefront of sustainability and innovation, as it strives to realize its vision and commitment to a sustainable future. This latest initiative stands as a testament to ALI's enduring dedication.
“Ayala Land is prepared to go above and beyond the EDGE Zero Carbon framework, starting with Embodied Carbon - we are committing to reduce embodied carbon in our buildings beyond what is required through efficient design and use of construction materials,” said ALI incoming President Meean Dy.
Dy vowed that ALI will continue to explore partnerships with suppliers of sustainable materials with less carbon footprint and further offset embodied carbon through carbon forests.
"We are also taking initiative to divert generated waste away from landfills. We make sure that a significant volume of our generated waste is being sent to recyclers, ecohubs and composts,” she said