Calls to protect the planet and the people get more resonating and expansive in the past years. This prompts several corporations to commence taking on the responsibility to make good contributions to the environment and humanity by setting and committing to targets and plans for sustainability.
Nowadays, sustainability is among the top priorities in the corporate world. But even way before this field is being actively pursued by businesses at present, sustainability has already been deep-seated in the mission, vision, and values of Ayala Corp.
“In recent years, the company’s sustainability philosophy and vision grew and matured into one that is rooted in a sharpened focus on environmental, social, and governance (ESG) factors and in creating shared value (CSV),” Ma. Victoria Tan, head of Ayala Corp.’s Group Risk and Sustainability Unit, said.
“Taken together, understanding our ESG impacts ensures that we remain a responsible organization, while positively contributing to overall societal development. This allows us to deliver lasting and meaningful impact through the way we do business,” she added.
As a conglomerate, Ayala Corp. harnesses synergy among its businesses for its plans and initiatives involving ESG and sustainable development. Every business unit in the corporation has its own part in achieving sustainability.
In 2018, Ayala Corp. formulated its Sustainability Blueprint to establish its commitment to the United Nations Sustainable Development Goals (SDGs). In the blueprint, each business under Ayala Corp. has a primary target, which is aligned with a particular SDG, to be attained by 2030. These targets could contribute to accomplishing 11 of the 17 SDGs.
Seeing that its businesses could address marginalization, untapped potential, and irresponsible growth, the Ayala Sustainability Blueprint seeks to bring access and inclusivity concerning basic needs; productivity and competitiveness by generating opportunities and employment; and responsible growth and innovation that minds the environment.
“The blueprint is straightforward: We want to ingrain sustainability and ESG into our businesses. It’s about being a responsible corporate citizen, and understanding that care for the environment, fair treatment of people, and good corporate governance are part and parcel of doing business,” Ms. Tan said.
The synergy in Ayala Corp. is also making strides in carrying out initiatives related to ESG.
For the environment, several businesses under the conglomerate contribute to improving the electric vehicle (EV) ecosystem in the Philippines.
Two Ayala Malls now have integrated EV charging stations and transportation systems installed by Ayala’s electronic manufacturing arm Integrated Micro-Electronics, Inc. (IMI). Ayala Land also opened more than 20 charging hubs across Luzon.
Regarding EVs, Kia Philippines, which is part of AC Motors, released its first electric vehicle, EV6.
Earlier this year, Taiwanese company Gogoro has partnered with Ayala Corp. and Globe group’s 917Ventures to bring in Gogoro’s smart electric scooters, or Smartscooters, to the Philippines.
More recently, last May, IMI signed an agreement with California-based company Zero Motorcycles for the production of electric motorcycles and battery and motor assemblies. The two companies are expected to begin mass production by June.
In terms of promoting clean energy, Ayala’s power generation arm ACEN is leading in expanding renewable energy in Southeast Asia and Australia, and has completed the first market-based energy transition mechanism in the world.
Ayala Corp.’s social agenda, meanwhile, is centered on meaningful work and community vitality with targeted strategies among customers and communities as well as its supply chain and workplace. Apart from the SDGs, the corporation have also adopted the UN Guiding Principles on Business and Human Rights as its foundational guide for its plans on the social side.
The conglomerate also aims for better gender diversity in its board as part of its commitment to good governance. Initially targeted to have at least 30% or two female directors on the board by 2025, Ayala Corp. already surpassed this goal as it now has 42.86% female representation in its seven-seat board.
Ayala Corp.’s core business units — Ayala Land, ACEN, Globe Telecom, and the Bank of the Philippine Islands (BPI) — would also play a significant part in starting the conglomerate’s work towards achieving net zero by 2050.
The corporation made its net-zero commitment back in 2021 and is on track to finishing its Net-Zero Roadmap this year.
“Ayala’s core business units will determine main intervention areas for high-impact emission reductions by 2050 that will aid in the group’s overall low-carbon transition strategy,” Ms. Tan said.
“While we are starting with the four core business units, in the wings are Ayala’s other subsidiaries, which we will also include in the group’s larger climate ambition,” she added.
For Ayala Corp., such establishment of its Sustainability Blueprint and net-zero commitment show how ESG and sustainability influence its business currently and in the time ahead. The conglomerate also keeps on monitoring the progress of its other frameworks such as the Taskforce for Nature-related Financial Disclosures. Also in the works is Ayala’s Social Framework.
As synergy within the conglomerate enables and accelerates progress on its sustainability agenda, Ayala Corp. looks to furthering synergies across its businesses this year.
“A priority for us in 2023 is to find ways to drive more synergies among the different companies and assets within our portfolio, and this best captures how the focus on ESG has generated value for Ayala Corp.,” Ms. Tan said.
Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience by enabling them to publish their stories directly on the BusinessWorld Web site. For more information, send an email to online@bworldonline.com.
Join us on Viber at https://bit.ly/3hv6bLA to get more updates and subscribe to BusinessWorld’s titles and get exclusive content through www.bworld-x.com.