MANILA, Philippines — Ayala Corp., the country’s oldest conglomerate, announced yesterday its boldest commitment yet toward sustainability, committing to achieve net zero greenhouse gas emissions by 2050.
Ayala Corp. president and CEO Fernando Zobel de Ayala made the announcement during the group’s Integrated Corporate Governance, Risk Management, and Sustainability Summit held Thursday.
“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. 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,” Zobel said.
The commitment is aligned with the Paris Agreement’s goal of limiting global warming to 1.5°C compared to pre-industrial levels.
To develop a net zero roadmap, Ayala has partnered with South Pole, a leading project developer and global climate solutions provider that works with private organizations and governments worldwide.
Ayala and South Pole will develop a detailed greenhouse gas footprint in the next 12 months.
The partnership will assess potential emission reduction activities and strategies to help Ayala prioritize and budget for necessary interventions across its core business units.
The goal is to implement practical steps to reduce emissions as quickly as possible.
This year alone, Ayala will focus on determining the actual and potential impacts of climate-related risks and opportunities on its businesses, strategy, and financial planning.
Among Ayala’s specific measures include halting financing of new greenfield coal power generation projects by its banking arm BPI.
BPI will reduce its coal power generation exposure to half of 2020 by 2026 and to zero by the end of 2032.
Its telecoms giants Globe has shifted to buying energy directly from renewable energy producers for its headquarters in Taguig and six offices and facilities since 2019
AC Energy, the power generation arm, is on its way to installing 5GW of renewable energy by 2025.
SM Investments Corp. (SMIC), the Sy-owned conglomerate, likewise announced that it is taking charge in enjoining business leaders across the ASEAN region to adopt sustainable business practices during the Global Reporting Initiative (GRI)-SM ASEAN Sustainability E-Summit 2021 which commenced yesterday.
With the theme “Leaving No One Behind: Private Sector in Solidarity for Sustainable COVID-19 Recovery and Delivering the SDGs (Sustainable Development Goals),” the two-day E-Summit will set the sustainability agenda and strategy for 2022 in the aftermath of the pandemic.
“This is in hopes of mitigating the devastating effects of climate change, thus creating a better and greener future for stakeholders,” SMIC said.