Ayala Land: first publicly-listed Phl developer with SBTi approval
Daily Tribune
Ayala Land has made history as the first publicly listed property development company in the Philippines to receive validation and approval from the Science Based Targets Initiative (SBTi) for its near-term and net-zero science-based greenhouse gas (GHG) emission reduction targets.
In line with the goals of the Paris Agreement and the UN-backed Race to Zero campaign, Ayala Land has committed to aligning its strategies with the global aspiration of limiting warming to 1.5°C above pre-industrial levels.
In 2021, Ayala Land embarked on its Net Zero journey together with the Ayala Group of companies when it made a pivotal commitment to achieve Net Zero Greenhouse Gas (GHG) emissions by 2050.
For its near-term targets, Ayala Land has committed to reducing its absolute scope 1 and 2 GHG emissions 42% by 2030 from a 2021 base year and its absolute scope 3 GHG emissions 29.4% within the same timeframe, including land-related emissions and removals from bioenergy feedstocks.
Scope 1 emissions refer to direct emissions from owned or controlled sources, while scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions represent those from activities from assets not owned or controlled by the organization, but that it indirectly affects along the value chain.
Ayala Land’s long-term targets, on the other hand, are to reduce absolute scope 1 and 2 GHG emissions 90% by 2050 from a 2021 base year and its absolute scope 3 GHG emissions 90% within the same timeframe, also including land-related emissions and removals from bioenergy feedstocks.
Ayala Land completed its GHG inventory with a 2021 baseline year after a comprehensive assessment of its operational and supply chain emissions. By the end of 2022, Ayala Land finalized a high-level net zero roadmap composed of SBTi-aligned targets for 2030 and 2050, facilitated by the guidance of the South Pole Group, a global decarbonization consulting firm.
Ayala Land's action plans to meet its science-based targets include transitioning its commercial properties to renewable energy sources through power purchase agreements supplemented with quality Renewable Energy Certificates (RECs).
By the of end 2023, 91% of Ayala Land’s total gross leasable area (GLA) was energized from renewable energy sources.
Other strategic interventions Ayala Land plans to implement in the coming years include prioritizing cost-neutral and readily available technologies to mitigate emissions. These interventions involve transitioning service vehicles and construction equipment to electric alternatives, converting backup generators to fuel cells, and replacing air-conditioning refrigerants with lower global warming potential refrigerants such as Hydrofluoroolefin (HFO).
The property giants will also actively collaborate with its supply chain partners to push their own transition towards a renewable energy and circular economy future, ensuring they achieve net-zero emissions as well. 75% of Ayala Land's emissions come from supply chain activities like the manufacture of steel, cement, and PVC.