As the effects of climate change are steadily becoming more tangible, we all too often hear one corporation after another pledging to enact more sustainable practices. Yet Ayala Corporation is moving the goalposts further, with the aim of not just preserving the country’s natural resources, but building businesses that enable the next generations to truly thrive.
In 2021, Ayala Corporation made a group-wide commitment to achieve Net Zero Greenhouse Gas (GHG) Emissions by 2050. Climate Action is just one element of Ayala’s sustainability agenda. There are also social aspects to its plan, with a big emphasis on diversity, equity, and inclusion.
We chat with Ayala Corporation’s Chief Sustainability Officer, Jaime Urquijo, on how the company plans to achieve this.
“The biggest project that we are currently implementing is our Net Zero ambition,” said Urquijo. “This is both a source of anxiety and excitement for me as this is truly fascinating work. We are tasked to plot out value-accretive ways to drive down our group’s GHG emissions all while maintaining our group’s aggressive growth targets.”
Redefining sustainability
He confesses, the new direction is not unique and is often muddled by investor-friendly buzz words that often obscure a corporation’s true intentions.
“Sustainability can be an intimidating, or even a confusing concept, since it talks not just about the environment, but also of society,” he explains.
“I was inspired by how United Nations Brundtland Commission defined sustainable development back in 1987: ‘Meeting the needs of the present without compromising the ability of future generations to meet their own needs.’ I have always felt that this definition elegantly captures what sustainability is all about.”
“For Ayala Corporation, everything we do, regardless of department or role, revolves around our purpose of ‘building businesses that enable people to thrive.’ My specific role is to make sure that all our actions today will allow Ayala to continue operating for another 190 years and therefore continue building businesses that enable people to thrive,” he clarifies.
License to exist
Operating sustainably while still generating profits is often at odds with each other. However, Urquijo believes there is a way to coexist.
“At the end of the day, Ayala Corporation is a for-profit entity that needs to create value for shareholders. However, what we feel differentiates us is our belief that the best and most sustainable way to do this is by building businesses with lasting long-term impact for people and communities. We have been doing this through the years with investments in urban development, water distribution, telecommunications, inclusive financial services, and now renewable energy, affordable healthcare, education and new forms of sustainable mobility and transportation. I personally believe that being in the business of addressing pain points and helping people succeed is a more compelling way of generating profits.”
“When you look at it, our stakeholders were all saying that sustainability and Ayala’s reason for being are almost the same — we’re here to try to help make things better than what they are right now. It’s ultimately about staying relevant to the people that we touch every day with our products and services. We must be a contributor to the well-being of individuals and communities, or else we lose their trust and our license to exist.”
A more personal stake
Besides being responsible for helping Ayala Corporation meet its goals, Urquijo shares how he is also personally invested in achieving this target.
“I grew up with a very strong love for the outdoors and the natural environment. As I grew up, that passion evolved to include diving, and it gave me a really fantastic opportunity to get to know the vast and incredible underwater resources of the Philippines. In fact, I even spent a summer working as a dive guide in Dumaguete. I have been fortunate enough to have had opportunities to volunteer and work in marine sanctuaries, and recently have been honored to serve on the board of WWF Philippines.”
“This passion has only grown as I am now a very proud father of two, and a lot of my time with my son and daughter is spent outdoors. Watching them interact and learn about the natural environment has been incredibly fulfilling, and, at the same time, reinforces why it is so important that we do all we can…”
Yet Urquijo is worried his children might not be able to enjoy the same natural wonders he has had the good fortune to see.
“Many scientists now believe that we might breach a global warming scenario of 1.5°C earlier than expected. Because of this, many are now focused on the implications of a 2.0°C global warming scenario and in that scenario, according to the Intergovernmental Panel on Climate Change (IPCC), 99 percent of all coral reefs will be destroyed. So by the time my son is able to start diving, there may no longer be the same coral reefs around that I was so fortunate to grow up learning about and appreciating.”
Measuring progress
Nonetheless, Urquijo has a very detailed plan to get the ball rolling, starting with setting the right foundations and means to measure their progress.
“Going for Net Zero requires putting in, first, the right systems to properly and accurately account for, and report our emissions. We then need appropriate interventions — in terms of new technologies, people, processes, and even culture — to help us manage and ultimately reduce our greenhouse gasses in value accretive ways. We also intend to have our targets and action plans backed by the Science-based Targets Initiative, the global authority that determines the scientific rigor and credibility of a company’s GHG ambition.”
Having worked with Ayala’s renewable energy arm, he’s confident these changes can be made.
“I consider my four years in ACEN, Ayala Corporation’s renewable energy development platform, to have been particularly informative and inspiring. Renewable energy has — in a relatively short period — gone from a nice-to-have, to an integral part of many energy grids around the planet. As the costs of these new exciting technologies (wind, solar, and battery) continue to drop lower, they will unlock even more opportunities for us to grow sustainably and hopefully combat the biggest crisis of our generation that is climate change.”
“We harness these opportunities through big, long-term projects that hopefully have positive regenerative impacts on the environment, help ensure fairness and inclusion in society all while adhering to the highest levels of ethics in our operations. I feel that we are only scratching the surface with the new opportunities and industries that the sustainability movement is making possible. I am very much looking forward to searching for new avenues to help Ayala and the country grow in ways that are not detrimental, but rather additive, to the well-being of future generations.