Innovating a new age of sustainability

For decades, sustainability was seen as a side project for corporations: a feel-good initiative or a box to check. But in today’s world, it has become the core of long-term value and a powerful engine for transformation. Aboitiz Group’s journey to becoming the Philippines’ first techglomerate is a prime example of this new reality. By embedding sustainability into the operations of its business units, we’re showing how innovation, digitalization, and collaboration can transform industries and create lasting value for communities and the nation.

This integrated model begins with leadership. At Aboitiz, sustainability is not confined to the boardroom or the CEO’s office. It is a shared responsibility across all levels of the organization, embedded into daily decisions and long-term strategies alike. This distributed form of leadership ensures that sustainability is operationalized — not just talked about.

The power sector is one clear example. Aboitiz Power has committed to a 50-50 energy mix by 2030, balancing renewables with thermal power. It is investing heavily in hydro, solar, and geothermal projects, while also forging international partnerships such as with Japan’s JERA to scale renewable capacity. This approach strengthens the country’s energy security while aligning with the Philippines’ national targets of 35 percent renewable energy by 2030 and 50 percent by 2040. The lesson here is simple: collaboration and innovation are indispensable to accelerate the energy transition.

In banking, UnionBank has taken sustainability to heart by integrating it into its digital-first strategy. Its issuance of a $150 million social bond in 2021 supported over 4,000 micro, small, and medium enterprises. City Savings Bank’s acquisition of Banko Kabayan further expanded financial inclusion for countryside entrepreneurs. These initiatives show that financial innovation can unlock opportunities for underserved communities, creating both economic and social returns.

Aboitiz Foods, meanwhile, is tackling food security while reducing its environmental footprint. By surpassing plastic recovery targets by more than 300 percent, it is helping build a circular economy that addresses one of the country’s most urgent environmental challenges. Such strides remind us that industries with heavy footprints can still innovate their way toward sustainable growth.

Even in social development, the group has reimagined corporate responsibility. Aboitiz Foundation’s CarbonPH, a 55,000-hectare reforestation project in Cebu, aims to restore ecosystems while generating carbon credits and creating livelihoods. AuroraPH brings electricity and connectivity to 300 remote schools for the very first time, ensuring students and teachers are no longer left behind. These projects prove that sustainability, when tied directly to business and community needs, becomes a catalyst for lasting resilience.

What connects all these stories is an ecosystem of collaboration. Strategic partnerships — with global investors, local communities, civil society and government — have enabled Aboitiz to mobilize resources at scale and de-risk ambitious projects. At the same time, strong governance has ensured accountability and alignment with long-term objectives.

Aboitiz Group has made major strides in its sustainability journey because it sees sustainability as both a business advantage and a societal obligation. By embedding responsibility across the organization, leveraging partnerships, and maintaining governance as a core pillar, it has created a model for how conglomerates can drive meaningful change.

As we enter a new age of corporate sustainability, the message is clear: companies that innovate, collaborate, and lead with integrity will not only endure but thrive. Sustainability is not simply about surviving today’s challenges. It is about building the foundation for resilience, prosperity and shared value for generations to come.