REDEFINING SUSTAINABILITY: Ayala Land becomes first developer with SBTi validation

In a groundbreaking achievement for sustainability in the Philippines, Ayala Land has become the first publicly listed property developer in the country to receive validation from the Science Based Targets Initiative (SBTi) for its ambitious near-term and net-zero greenhouse gas (GHG) emission reduction targets, setting a historical precedent that underscores the role of the real estate sector in combating climate change.

This milestone highlights Ayala Land’s commitment to sustainability, aligning its strategies with the global goal of limiting warming to 1.5°C, as outlined in the Paris Agreement and the UN-backed Race-to-Zero campaign.

Last month, the company also made strides toward Net Zero Goals, reflected in its improved 2022 ESG ratings. They received a B rating for Water Management from the CDP, the highest in the country, while maintaining an A-rating on the Climate Change Score Report — well above Asia’s regional average of C — placing it alongside leading firms like Singapore’s City Developments Limited and Japan’s Hulic Co. Ltd. and Mitsubishi Estate Company Ltd.

Long-term sustainability

Ayala Land has committed to achieving net-zero GHG emissions across its value chain by 2050, outlining sustainable near-term goals to reduce absolute scope one and two GHG emissions by 42 percent and scope three emissions by 29.4 percent by 2030, both based on a 2021 baseline.

Long-term, the company aims for a 90-percent reduction in absolute scope one and two GHG emissions and a 90-percent cut in scope three emissions by 2050, encompassing land-related emissions and bioenergy feedstock removals.

This means Ayala Land is not only enhancing its own sustainability practices but also contributing to a healthier environment and a more resilient future for communities across the Philippines.

Action for the climate

Ayala Land’s action plans to meet its science-based targets include transitioning its commercial properties to renewable energy through power purchase agreements and quality Renewable Energy Certificates (RECs), with 91 percent of its total gross leasable area energized from renewable sources by the end of 2023. The company also aims to prioritize cost-neutral and readily available technologies to mitigate emissions, such as converting service vehicles and construction equipment to electric alternatives and replacing high-impact refrigerants with lower global warming potential.

Recognizing that 75 percent of its total GHG emissions stem from its supply chain, particularly from construction materials like steel, cement, and PVC, Ayala Land is committed to collaborating with supply chain partners to foster a transition toward renewable energy and a circular economy, ensuring collective progress toward net-zero emissions.

Ayala Land’s Net Zero roadmap is a landmark initiative designed to significantly reduce environmental impact and contribute to global climate change efforts, enhancing transparency and accountability in sustainability reporting through adherence to SBTi criteria.

This commitment underscores Ayala Land’s sustainability leadership and fosters a healthier, more resilient community for future generations.