“Championing Responsible Business”
Ayala Corporation is Leading the Way in Exemplary Sustainability Integration and Responsible Business Practices
Ayala Corporation (“Ayala”), founded in 1834 and officially incorporated on 23 January 1968, in the Philippines, stands as a distinguished conglomerate with diversified interests, spanning across real estate, banking, telecommunications, power, healthcare, logistics, water, industrial technologies, education, and technology ventures. Grounded in the core values of imagining better, inspiring excellence, doing things right, and creating value together, Ayala aims to be a holistic and meaningful value creator. The company continues to build on its strong track record of delivering healthy returns to its investors, while also providing affordable, accessible, and quality products and services to its customers. Significantly, its work both in the commercial and philanthropic spaces generate meaningful environmental and social impact for its broad stakeholder base.
Ayala’s commitment to sustainable and responsible business practices reflects its dedication to manage its environmental, social, and governance (“ESG”) impacts and create shared value. This unwavering commitment has propelled Ayala to a position of recognition in the sphere of sustainable business practices. The company has strategically invested in industries such as power, infrastructure, healthcare, education, and logistics, aligning its operations with these core sustainability principles.
At Ayala, sustainability is not merely a buzzword but a guiding principle, encompassing three fundamental action areas. First, the “Ayala Sustainability Blueprint: Bridging the Filipino to 2030” outlines a steadfast commitment to enhancing the lives of Filipinos through pathways that emphasize access and inclusivity, productivity and competitiveness, and responsible growth and innovation. Secondly, Ayala has embraced the challenge of achieving net-zero greenhouse gas emissions by 2050, aligning its efforts with global initiatives to combat climate change. Finally, Ayala’s ESG Reporting Framework ensures the company continually refines its strategic ESG priorities to maximize relevance and impact in its sustainability endeavors.
Stakeholder engagement is a fundamental component of Ayala’s sustainability strategy, involving various organizational units aligned with their specific roles, as well as the dedicated corporate social responsibility arm, Ayala Foundation, Inc. (“AFI”). This comprehensive approach ensures that Ayala Corporation actively understands the ambitions and pain points of its diverse stakeholder groups, while also comprehensively addressing the concerns and expectations of its diverse stakeholder groups.
Ayala is an active contributor to several international and domestic sustainability-focused institutions. Among which include the United Nations Global Compact (UNGC), where Ayala is committed to the UNGC’s principles, ensuring its compliance with human rights and the absence of child or forced labor in its operations.
The structure for sustainability governance within Ayala ensures effective oversight. The Sustainability Committee at the board level diligently monitors the company’s progress in addressing environmental, social, and governance issues. The Chief Sustainability and Risk Officer is responsible for implementing sustainability and risk programs. This role is supported by the Group Sustainability and Risk Management team, which plays a pivotal role in executing sustainability and risk initiatives. The Ayala Group Sustainability Council, led by Ayala’s Sustainability Unit, brings together representatives from Ayala’s subsidiaries, joint ventures, and affiliates, working collectively on process improvements and delivering groupwide initiatives.
Ayala actively engages in the broader ecosystem to ensure a positive impact. Ayala has a robust materiality assessment process that guides its prioritization and reporting of ESG factors. Megatrends and financially material ESG issues that contribute to or diminish Ayala’s enterprise value are considered in this assessment. Ayala’s ESG Materiality Framework identifies ESG priorities, topics, and metrics, which are available in Ayala’s 2022 Integrated Report.
Ayala’s approach to managing environmental impact includes a commitment to achieve Net Zero Greenhouse Gas Emissions by 2050, aligned with the Paris Agreement’s goals. The company regularly monitors and reports its biodiversity impacts, energy consumption, water usage, and waste management. Complementary to its net-zero commitment, Ayala has embarked on a groupwide forest and biodiversity conservation program, named Project Kasibulan, to conserve high-value forests in the Philippines.
To ensure a safe, productive, and supportive workplace, Ayala focuses on employee needs, wellbeing, professional development, and safety. Various programs and benefits, including mental health support, wellness programs, educational support, and diversity and inclusion initiatives, are in place to support employees.
Ayala actively participates in community engagement, development, and charitable activities, primarily through AFI. AFI’s initiatives span education, sustainable livelihood, and patriotism, positively impacting millions of people. Ayala’s groupwide Brigadang Ayala program mobilizes employees to engage in volunteer activities, particularly in support of public schools and community needs, reinforcing its commitment to social responsibility.
At Ayala, shared accountability drives the success of sustainability initiatives across various organizational units. This approach ensures sustainability is seamlessly integrated into key result areas, fostering progress and engagement, all aligned with the company’s overarching vision and objectives.
Ayala’s commitment to sustainable and responsible business practices is evident in its comprehensive approach to ESG impacts and its unwavering dedication to creating shared value. The company’s sustainability philosophy and governance structure reflect a commitment to meaningful and lasting impacts that benefit both the company and society at large. Ayala’s innovative initiatives and strategic targets underscore its position as a leader in sustainable business practices.