Ayala Corp still in index for global sustainability

MANILA, Philippines — Ayala Corp. (Ayala), the country’s oldest conglomerate, was re-confirmed as a constituent of the London-based global sustainability index, the FTSE4GOOD Index Series.

This followed the June 2019 review of its Environmental, Social and Governance (ESG) performance.

London-based FTSE Russell, a global sustainability index provider, first formally included Ayala as a constituent in its FTSE4GOOD Index Series in 2016, specifically in the FTSE4Good Emerging Indexes and FTSE4Good ASEAN 5 Index.

These indices are designed to help market participants create or assess sustainable investment products of companies, research environmentally and socially sustainable companies, and provide a transparent and evolving global ESG standard on which companies could benchmark their performance.

Ayala chief finance officer and chief sustainability officer Jose Teodoro Limcaoco said the group believes it is necessary for its companies to be sensitive to the needs of their communities.

“You can only create long-term value when you build on a strategy focused on sustainability. Investors recognize this and thus focus on ESG performance. Ultimately, this drive for sustainability is meant to ensure that Ayala’s businesses not only create value but leave a meaningful impact in the communities where we serve,” Limcaoco said.

Ayala embraces a holistic view of sustainability that is instilled throughout its companies, he said.

This includes efforts to measure and report business impact, and verify, benchmark and continuously improve on these contributions based on globally recognized standards.

Moving forward, the group is committed to the highest standards of disclosure to enable its stakeholders to see a true picture of its financial condition, system of governance, and progress toward profitability and sustainability.

To illustrate this, Ayala Land Inc., the group’s property arm, announced an aggressive plan back in 2017 to become carbon neutral by 2022.

AC Energy, on the other hand,  is continuously investing in renewable energy to meet the need of the Filipinos for affordable and reliable energy sources. It is on track to attain its target of increasing its renewable energy portfolio to five gigawatts by 2030.

Ayala has aligned its strategies with the UN Sustainable Development Goals (UN SDGs) through the Ayala blueprint.

The effort is a group-wide plan specifically designed to enable Ayala businesses to champion UN SDGs and tangibly contribute to three pillars where its businesses can generate the most significant and lasting impact.

Ayala chairman and chief executive officer Jaime Augusto Zobel de Ayala, who was named UN SDG Pioneer for Sustainable Business Strategy and Operations in 2017,  said it is necessary to have a deeper engagement with society.

“From both a practical and moral standpoint, business cannot thrive in an environment rife with economic inequity. Ignoring these issues threatens our ability to create long-term value and jeopardizes the sustainability of the enterprise and markets,” he said.