MANILA, Philippines, Oct. 21, 2021 /PRNewswire/ -- Ayala Corporation, one of the largest conglomerates in the country, is committing to achieve net zero greenhouse gas emissions by 2050, as announced by its President & CEO Fernando Zobel de Ayala 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.
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 initiated the following climate-action interventions:
Ayala Land pushes for offsetting its Scope 1 and 2 emissions by 2022 for its commercial operations
BPI will not finance new greenfield coal power generation projects. The Bank will reduce its coal power generation exposure to half of 2020 by 2026 and to zero by end of 2032.
Globe, a participant to the Race to Zero and a signatory to the Science-Based Targets Initiative (SBTi), has shifted to buying energy directly from renewable energy producers for its headquarters in Taguig and six offices and facilities since 2019
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. In the next 12 months, Ayala and South Pole will:
Develop a detailed greenhouse gas footprint that includes all relevant Scope 3 emissions from the value chain, which is considered net zero best practice
Assess potential emission reduction activities and strategies to help Ayala prioritize and budget for these interventions across its core business units, ensuring practical steps are taken to reduce emissions as quickly as possible
Establish interim targets aligned with a science-based 1.5°C pathway across the core business units to ensure Ayala has robust and measurable milestones along their journey to net zero by 2050
Ayala Corporation and its core business units are signatories to the Taskforce on Climate-related Financial Disclosures (TCFD) and are currently working to implement the 11 recommended disclosures. This year, Ayala focuses on determining the actual and potential impacts of climate-related risks and opportunities on its businesses, strategy, and financial planning. A physical and transition-risk analysis is well underway.
Ayala's announcement of its net zero by 2050 ambition comes ahead of the 26th United Nations Climate Change Conference of the Parties (COP26) to be held in Glasgow, United Kingdom in November 2021, where signatories to the Paris Agreement will be reporting back on progress made since 2015.
Last April, the Philippines submitted its first nationally determined contribution to the Paris Agreement, committing to a projected greenhouse gas emission reduction and avoidance target of 75% by 2030.
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.
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SOURCE Ayala Corporation